Government gets over GH¢4 billion from T-bills at 27% interest rate

Government has secured GH¢4.52 billion from treasury bills in its latest auction issued on March 6, 2023.

The bills were oversubscribed by over GH¢1.82 billion at an average interest rate of 27%. According to the auction results from the Central Bank, the government secured GH¢1.48 billion from the 91-day bill GH¢1.17 billion from the 182-day bill, and GH¢1.89 billion from the 365-day bill.

The target for the auction was GH¢2.78 billion. However, even though the subscriptions surpassed the target, it was lower than the GH¢5.06 billion secured by the government in last week’s auction. Interest rates however reduced to 24.16% for the 91-day bill, 26.56% for the 182-day bill, and 27.54% for the 365-day bill.

The over 30% interest rate at which the government was selling the bills has come under great concern as analysts fear the government may not be able to fulfill the maturities when due.

According to reports, the government on Friday, March 3, 2023, rejected all the bids above 35%, which led to the reduced interest rates for the new auction on March 6, 2023.

Out of the GH¢6.15 billion bills tendered; the government only accepted GH¢4.52.

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SSD/FNOQ