Gov’t set to borrow GHC25bn.

Government will be hoping to raise a little
over 25 billion Ghana cedis from July to
December. The funds will be secured though
the issuance of bonds and treasury bills
from investors and commercial banks.
The 25 billion Ghana cedis is similar to the
amount raised for the first half of this year.
This should mean that government will be
raising about 50 billion Ghana cedis for the
whole of 2015.
Sources say the Finance Ministry is hoping to
use the funds to pay debts that are
maturing and finance certain infrastructure
projects outlined in 2015 budget.
A careful look at the issuance calendar for
the country’s securities shows that for the
month of August, government will be
borrowing, 5.3 billion Ghana.
However, for some economists, the decision
to borrow more locally will indeed affect the
public debt, which has hit 90 billion Ghana
cedis as at June this year.
Some analysts have maintained that with the
government set to raise 1 billion dollars
through the issue of the EUROBOND, the
country’s debt will indeed hit 100 billion
before end of this year.
The move could crowd out private
businesses who also want to borrow locally,
and possibly hike lending rates in the
country, as government is currently paying
around 25 percent as interest when it
comes to interest on securities issued.
According to the issuance calendar, the 2-
year note and the 3-year and 5-year fixed
rate bond are all now available to both
residents and non-residents.

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