File photo of Ghana Cedi Notes
Government’s cost of interest on short term domestic borrowings have recorded a marginal drop.
Though government could not meet it's expected like borrowing target, it will record some savings in interest payments.
Currently, interest cost on the 91-day and 182-day T-Bills has fallen slightly.
This development is welcoming news for the government because of the savings to be used to finance some important projects.
According to Bank of Ghana, government accepted all the bids worth GH¢1.17 billion but investors were more interested in the short-term end of the market, buying as much as GH¢850 million of the 3 months T-bill.
There have been several concerns on government’s appetite for borrowing which could be crowding out businesses and household consumers from access to loans.
Meanwhile, the government weekly T-bills target fell short by 23% as it could not mobilize or exceed the target of GH¢1.54 billion.
Presently, government debt on the domestic market has outstripped the foreign debt.
Securities Bids Tendered (GH¢) Bids Accepted (GH¢) Interest rate
91 Day Bill 850.66 million 850.6 million 12.80%
182 Day Bill 153.66 million 153.66 million 13.60%
364 Day Bill 166.56 million 166.56 million 16.44%
Total 1.170 billion 1.170 billion
Target 1.540 billion
