Government borrowing recklessly, disregarding T-bills calendar – Lord Mensah

An Economist at the University of Ghana, Dr. Lord Mensah, has taken a swipe at the government for the manner in which it is borrowing.

According to him, the government is disregarding the treasury bills issuance calendar and borrowing anyhow.

Treasury bills have become the government’s primary source of borrowing since it no longer has access to the international capital market.

On his X page, the economist said: “If you want to know how low the economy has sunk, look at the frequency and the volumes of T-bills issued by the Ghana government. This government has thrown away the treasury bill issue calendar and they're doing their own thing. Borrowing left and right from the money market.”

The government set a target of GH¢5.881 billion for its treasury bills auction on September 20, 2024.

Last week, the government exceeded its target for treasury bills for the first time in ten weeks after recording undersubscriptions for the past nine weeks.

The government recorded a total of GH¢5.529 billion in its latest auction, surpassing its target of GH¢5.400 billion by GH¢129.67 million.

During the auction on September 13, 2024, and issuance on September 16, 2024, GH¢4.698 billion was secured for the 91-day bill.

However, the government accepted GH¢594.37 million for the 182-day bill and GH¢245.74 million for the 365-day bill.

If you want to know how low the economy has sunk, look at the frequency and the volumes of T-bills issued by the Ghana government. This government has thrown away the treasury bill issue calendar and they're doing their own thing. Borrowing left and right from the money market.

— The Prof (@stigue2001) September 21, 2024

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