Home NEWS The government has announced that we will borrow GH $2.9 billion to...

The government has announced that we will borrow GH $2.9 billion to pay our debts between June and August -Details

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The Ghanaian government plans to borrow slightly more than $2 billion in new money between June and August 2021, according to the current Issuance Calendar provided by the Finance Ministry.

According to Joy News, the government intends to issue around 21.96 billion, of which 19.86 billion would be utilized to repay maturing debt or rollover maturities.

A portion of the money to be mobilized will come from 91-day Treasury notes, a clear purpose of the government’s aim to decrease foreign borrowing, but this may crowd out access to money on the domestic market for the private sector.

According to the calendar, the government granted 91-day Treasury notes for $11.2 billion, while 182-day T-bills will be issued for $1.71 billion.

The new monies are intended to be used to support government initiatives specified in the 2021 Budget.

In terms of duration, the government would borrow up to GH8.13 billion in July 2021, the most of the three months.

However, 1.8 billion each is projected to be generated from the 3-year.

In addition, 1 billion is scheduled to be funded through the issue of a 10-year bond in August 2021.

While a one-year bill is projected to raise $1.45 billion, a two-year bond is predicted to raise $1.2 billion.

In the second quarter of this year, which ends this month, the government was expecting to borrow $4.12 billion in new money.

According to the administration, the 91-day and 182-day bills will be issued weekly, while the 364-day bill will be issued biweekly. Securities with maturities ranging from two to ten years will be issued.

Remember, Ghana’s public debt stock increased by 13 billion to 304.6 billion in March 2021, according to the Bank of Ghana’s (BoG) Summary of Economic and Financial Data.

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