Massive oversubscription as government secures GH¢5 billion from T-bills

The government exceeded its treasury bill target by 75% in its latest auction held on February 24, 2023.

According to the Bank of Ghana results, the government secured GH¢5.06 billion from the 91-day, 182-day, and 364-day bills.

The 91-day bill gathered GH¢2.93 billion, the 182-day bill secured GH¢665.99 million and the 365-day bill secured GH¢1.46 billion.

Interest rates hovered around 35.5% which is still quite high, a situation many analysts have raised concerns over.

The target for the auction was GH¢2.88 billion therefore the oversubscription was 75% away from the target.

Analysts have noted that the interest rates are too high for the government and may cost the government more when they mature.

Meanwhile, Finance Minister Ken Ofori-Atta noted that the main financing source for the 2023 budget is treasury bills and concessional loans.

According to him, this has become the case because of the closure of the international domestic bond market.

He made the comment when he appeared before parliament on February 16, 2023.

"Mr Speaker, as the domestic international domestic bond markets are shut, for the financing of government programmes, we are relying on treasury bills and concessional primary sources of financing for the 2023 budget,” he noted.

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