The
Bank of Ghana has served notice a Gh¢ 400 million, seven-year domestic
bond will be issued in April. The move is to use longer-term maturities
to restructure the central bank’s rising debt.
According
to the BoG’s issuance calendar, a total of 25.4 billion cedis ($7.88
billion) in domestic securities is expected to be raised before July.
Ghana
issued its debut seven-year domestic bond in August 2013 and held a
similar auction three months later with an 18 percent yield.
The
bank will also issue five-year bonds in March and June to raise 440
million cedis each, and three-year paper worth 630 million cedis each in
February and May to roll over maturing debts.
The
government did not issue a seven-year bond last year as it wanted to
avoid a spike in yields following a slump in the local currency.
“The
Treasury Bills and Notes (91-Day Treasury Bills – 2-Year Notes) are
short term debt securities. Issuance decisions will be made weekly
depending on Government’s projected daily cash position for the week
ahead.
It
is envisaged to issue at least GH¢880 Million of Treasury Bills and
Notes weekly at all times to support government liquidity requirements
which will include the redemption/ rollover of maturing securities for
the week,” the issuance notice signed by Caroline Otoo, Secretary of the
BoG said.
The Mahama-led administration is currently before the International Monetary Fund for a bailout to salvage the ailing economy.
0 comments:
Post a Comment