Government borrowed GH¢15.71 billion in T-bills for May 2024

In May 2024, the government borrowed GH¢15.71 billion through Treasury Bills.

This amount is 7% higher than the borrowing in April of this year.

According to the latest results from the Bank of Ghana, the government received GH¢15.60 billion from short-term securities in April, with new borrowing estimated at GH¢966.48 million.

The results also indicated that treasury yields were decreasing. For instance, yields for T-bills like the 91-day and 182-day decreased by 45 basis points and 70 basis points, to 25.10% and 26.95% respectively.

The 364-day yield decreased by 30 basis points in May, closing at 27.95%.

Market watchers and analysts predict that yields will continue to decrease due to a projected decrease in inflation.

However, they are cautious, as the decline may not be as fast as expected due to higher targets and delays in monetary policy rate cuts.

The government was forced to turn to the T-bills market to finance its projects after being barred from borrowing from foreign financial markets.

To get the $360 million next tranche of IMF bailout funding, Ghana is also scheduled to sign a draft Memorandum of Understanding with official creditors.

NOQ