• It plans to use GH¢1.040 billion to meet financing requirements for Q4 2021
• The move indicates that government borrowing is reducing
The latest Issuance Calendar has revealed Government is expected to move ahead to borrow GH¢1.040 billion in fresh issuance for the fourth quarter of 2021.
The yet-to-be borrowed fresh funds will go towards meeting financing requirements for the period.
Additionally, government intends to issue a gross amount of GH¢21.17 billion, out of which GH¢20.129 billion will be used to rollover maturating investments.
“As usual, majority of the funds to be mobilized will come from the 91-day Treasury bill, a move that has helped reduce foreign debt, but rather could crowd out the private sector from access to financing on the domestic market. The additional funds are expected to finance government projects for the last quarter of this year outlined in the 2021 Budget,” a Joy Business report said.
“The government will borrow as much as ¢10.8 billion of the 91-day T-bills during the period, lower than the previous quarter. It will be followed by the 3-year bond in which a total of GH¢2.3 billion will be mobilized. GH¢1.3 billion of that amount will be raised this Thursday 14th October, 2021,” it added.
Meanwhile, Government is expected to raise GH¢1.97 billion from the 182-day Treasury bill. Also, November 2021 will become the month for the highest amount to be issued on the domestic bond market.
However, government says it expects to raise GH¢1.8 billion from the 6-year bond, while GH¢1.2 billion is expected to be generated from a 10-year bond to be issued in the month of November 2021.
For the short-term securities of November 2021, government is planning to raise GH¢750 million each for the 2-year and 7-year bonds.
According to the Issuance Calendar, the 91-day and 182-day will be issued weekly, while the 364-day bill will be issued bi-weekly with the securities of 2-year up to 10-year will be issued through the book-building method. Read Full Story
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