BoG runs from public debt

The Central Bank failed to provide information on the country’s total debt situation at a press conference yesterday in Accra after its 68th regular Monetary Policy Committee (MPC) meeting.

This is a complete deviation from the status quo since the bank gives specific information on the country’s debt situation at such forums.

According to the bank, the Finance Ministry was responsible for that and would announce the debt figures later soon.

Henry Kofi Wampah, Governor of the Bank of Ghana (BoG), who addressed journalists, said the Ministry of Finance had not finished work on the debt profile.

“Unfortunately, we didn’t get the debt figures when we were going to press. The Ministry of Finance is working on the final 2015 figures, and I am sure in the next days they will come out with the debt position,” he said.

From November 20, 2015, to January 22, this year, Government of Ghana’s auction trading of its issues amounted to over GHc10.30 billion. If this is added to the over GHc100.7 billion by November 13, the total figure would be hitting close to GHc111 billion.

On 29th January, this year, the Central Bank is also looking forward to receiving about GHc1,159 million (GHc1.1 billion) from local investors.

Government does this on a weekly basis to borrow to finance its activities.

By end of September 2015, the country’s total public debt stood at GHc92.2 billion.

Between October 2 and November 13, 2015, Government borrowed over GHc8.6 billion from both local and foreign investors through the sale of its securities traded at the Bank of Ghana (BoG), bringing Ghana’s total debt to GHc100.7 billion.

That excludes the $1 billion Eurobond, which had a yield of 10.75 percent.

The Eurobond sale took Finance Minister Seth Terkper and the Central Bank Governor and other government officials on road shows in several countries overseas.

Meanwhile, the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) maintained the policy rate at 26 percent.

However, it said there were upside risks to the inflation outlook, which included uncertainties regarding the second round effects of the unanticipated petroleum price adjustments, exchange rate developments, as well as worsening external financing conditions.

Such risks, the Committee said, would be moderated by lower crude oil prices and improvements in the energy situation.