Gov’t Borrows GH¢10,350m For 3rd Quarter

Dr Ernest Addison, BoG Governor

GOVERNMENT HAS announced its plans to borrow a gross amount of GH¢10,350.00 million spanning June to August, this year.

Of this amount, GH¢9,873.37 million would be used to roll over maturities while the remaining GH¢476.63 million would constitute fresh issuance to meet government’s financing requirements.

Government’s recent issuance calendar, which made this known, said for June, it would borrow GH¢1,500 million in 91-day treasury bills (T-bills); GH¢1,050 million in 182-day T-bills; GH¢250 million in 364-day T-bills; GH¢300 million in two-year and another GH¢300 million in two years.

For July, GH¢2,500 million would be borrowed via 91-day T-bills; GH¢550 million in 182-day T-bills; GH¢400 million via 364-day T-bills; GH¢300 million in a three-year bond; GH¢250 million in a five-year bond and GH¢300 million via a 15-year bond.

For August, government intends to borrow GH¢1,400 million in 91-day T-bills; GH¢300 million in 182-day T-bills; GH¢200 million via 364-day T-bills; GH¢200 million via a two-year bond; and GH¢450 million via a 20-year bond.

The Bank of Ghana (BoG) said the 91-day and 182-day treasury bills would be issued weekly,  while the 364-day bill would, however, be issued bi-weekly through the primary auction, with settlement being the transaction date plus one working day.

Also, securities from two-year up to 20-year would be issued through the book-building method, it disclosed.

For the second quarter, government announced it wanted to issue a gross amount of GH¢12,100.00 million in securities, of which GH¢11,533.94 million would be used to roll over maturities while the remaining GH¢566.06 million would be fresh issuance to meet its financing requirements.

BY Samuel Boadi