Finance Minister caused financial loss to the state with $ 2.25 billion bond - Minority

The Finance Minister, Ken Ofori Atta has been accused of causing financial loss to the state with the issue of the recent 2.25 billion dollar bond.

According to the Minority spokesperson on Finance, Casesiel Ato Forson, the loss is up to the tune of 330 million dollars per year over the next fifteen years.

Addressing the media, the former Deputy Finance Minister under the Mahama administration said, the difference between the rate of the bond and that of the current treasury bill rate is the cause of the huge amount of money the country is allegedly losing through the deal.

“It will surprise you to know that, the use of proceeds as the Minister of Finance made it known to the public was categorical. He said the proceeds will be used for the purposes of switching short-term domestic instruments. And when we say short-term domestic instruments, we are making reference to 98 days treasury bonds and 192 days treasury bonds.

"Currently, treasury bonds as at 17th of April, is traded at 16.35%, and 182 days treasury bonds is traded at 16.70%, but what surprises me is that, the Finance Minister decided to go for a long-term debt of 19.5 % to switch off a debt of 16.35%. In fact, his actions are woefully causing financial loss to the state.

"From the calculations, it is clear that Ghana will be better off if we had decided to roll over the existing treasury bonds which is being traded at 16.35%, instead of going for 19.75 percent. From the calculations, Ghana would have been better off with $330 million US dollars if he had not decided to go on this tangent.” he noted.