Government seeks approval to raise US$5 billion Eurobond in 2021

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Wed, 28 Oct 2020 Source: www.ghanaweb.com

The Government of Ghana is seeking approval from Parliament to raise up to US$5 billion in Eurobond issuance in 2021, the finance minister, Ken Ofori-Atta has said.

According to him, the government is optimistic that favourable market conditions will allow it to raise the Eurobond up by another US$2 billion from the initial US$3 billion planned issuance.

“Of the total amount to be raised US$1.5 billion will be used to support the 2021 budget and US$3.5 billion to cater for the government’s debt obligations”

The Finance Minister said this while he presented the 2021 Expenditure in Advance of Appropriation budget before Parliament on Wednesday, October 28, 2020.

If all goes to plan on the global market, the bond issuance will become the largest Eurobond issued by Ghana since 2007.

Meanwhile, an amount of GH¢27.4 billion has been requested by the Finance Minister from the government intended towards the expenditure of the first quarter of 2021.

The Minister making a case for the approval before Parliament said, “that this Honourable House approves by resolution, the withdrawal of the sum of twenty-seven billion, four hundred and thirty-four million, one hundred and eighty thousand, five hundred and twenty Ghana cedis (GH¢27,434,180,520.00) from the Consolidated Fund."

“This is for the purpose of meeting expenditure necessary to carry on the services of the government in respect of the period expiring three months from the beginning of the financial year or on the coming into operation of the Appropriation Act in respect of the 2021 financial year,” he added.

The request made by the Finance Minister is intended to prevent transitional encounters in the affairs of the central government for the first three months after the general election.

Source: www.ghanaweb.com
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