Sunday , July 21 2024
Ken-Ofori-Atta

Government to borrow ¢3.33bn this week

The government will borrow ¢3.33 billion from the treasury market on Friday May 12, 2023, to partly refinance maturities worth ¢2.31 billion.

Joy Business understands that part of the ¢3.33 billion will be used to settle coupon payments of the pension bondholders.

The amount which will be the biggest so far this year will be issued via the 91-day, 182-day and 364-day Treasury bills.

Analysts perceive investors bidding higher yields on liquidity squeeze, as inflation data for April 2023 is expected to be release on May 10, 2023.

But the $750 million loans approved by the Parliament of Ghana last week may help slow down the rise in money market yields.

However, the cost of borrowing remains a concern to many analysts and market watchers.

The T-bill auction on Friday, May 5, 2023, was oversubscribed, as the treasury raised ¢2.57 billion, exceeding the gross target by 40.01%.

According to the auction by the Bank of Ghana, the government accepted a significant ¢2.56 billion from the bids submitted by the investors, largely the banks.

Yet again, majority of the bids came from the 91-day T-bills as ¢1.62 billion were tendered. All the bids were consequently accepted.

Also, almost all the ¢380.75 million of bids submitted for the 182-days T-bills were accepted.

 

Source : myjoyonline

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