Debt restructuring defers repayment of debt at a premium.
The economic principle is to borrow within one's ability to repay. So long as loans are channelled into productive investment in the economy, borrowing is justified ... read full comment
Debt restructuring defers repayment of debt at a premium.
The economic principle is to borrow within one's ability to repay. So long as loans are channelled into productive investment in the economy, borrowing is justified.
DAN 11 years ago
what does it tell you that 98% from outside the country? That no Ghanians bought their countrys bonds!
what does it tell you that 98% from outside the country? That no Ghanians bought their countrys bonds!
Michael 11 years ago
Mr Dan. The article says 98% not 100%. 100 minus 98 is NOT equal to zero.
Mr Dan. The article says 98% not 100%. 100 minus 98 is NOT equal to zero.
Adongo 11 years ago
I am wondering how the Government could pay back such a yield of 15%. Hopefully, government will channel the investment into productive ventures else the deficit will increase and our credit rating will be downgraded. A yield ... read full comment
I am wondering how the Government could pay back such a yield of 15%. Hopefully, government will channel the investment into productive ventures else the deficit will increase and our credit rating will be downgraded. A yield of 15% is a lot of money to pay back on a three year bond. It may look attractive to foreign investors but is it the right way for government to raise money?
Nana 11 years ago
Anybody will buy this bond at such astronomical rate. This is bad for our country. Don't cry for me Argentina?
Anybody will buy this bond at such astronomical rate. This is bad for our country. Don't cry for me Argentina?
John 11 years ago
I like the Argentina link. We never learn, do we?
I like the Argentina link. We never learn, do we?
Sankofa 11 years ago
Government will sell more bonds to raise funds to finance the yield.
So long as investors (foreign and local) have confidence in the economy, they will buy the bonds as the yield is very attractive.
Government will sell more bonds to raise funds to finance the yield.
So long as investors (foreign and local) have confidence in the economy, they will buy the bonds as the yield is very attractive.
Nicholas 11 years ago
Bond theory 101 at work. Analyst expected 15 -15.5 % but the issue eventually goes for 16.9%. Woow. And then the article goes on to say " this shows investor confidence in Ghana is very high"
Does XYZ business undersatnd t ... read full comment
Bond theory 101 at work. Analyst expected 15 -15.5 % but the issue eventually goes for 16.9%. Woow. And then the article goes on to say " this shows investor confidence in Ghana is very high"
Does XYZ business undersatnd the basics of bond issues or valuation of bonds for that matter?
These investors are not lookng for capital gain but the fixed income from the high interest rate. So oversubscription does not translate into investor confidence! Hahaaa, bond 101!
And why is Databank expecting yields to decline when the economy is tumbling? Have you listened to the financial news about the state of the Ghanaian econmy?
How can that be something to celebrate about?
Forthright 11 years ago
The comment "the Ghanaian fixed income market is so attractive to investors DESPITE the expected decline in the yield curve" bertays a lack of understanding of bonds. The expectation that yields will fall should explain the h ... read full comment
The comment "the Ghanaian fixed income market is so attractive to investors DESPITE the expected decline in the yield curve" bertays a lack of understanding of bonds. The expectation that yields will fall should explain the high appetite for the excessively priced Ghanaian bonds.
Forthright 11 years ago
Poor theory
Poor theory
KK 11 years ago
INITIATE DIASPORA BONDS JUST LIKE ISREAL, CHINA, INDIA AND RUSSIA WHICH CAN BE USE FOR INFRUSTRUCTURE IN THE COUNTRY SIMILA RATE. BOND ESTABLISH THE BOND MARKET. BOND SELLING IS VERY COMMON, THE USA, CANADA AND REST DOES IT. ... read full comment
INITIATE DIASPORA BONDS JUST LIKE ISREAL, CHINA, INDIA AND RUSSIA WHICH CAN BE USE FOR INFRUSTRUCTURE IN THE COUNTRY SIMILA RATE. BOND ESTABLISH THE BOND MARKET. BOND SELLING IS VERY COMMON, THE USA, CANADA AND REST DOES IT. USE DOES IT TO PAY GOVERNMENT LOANS CALL QUANTITATIVE EASING, HEAVY CHINESE LOANS THEY OWNED CHINA. GHANA SHOULD REFRAIN FROM PCHINESE AND OTHER FOREIGN LOANS PRINTING MONEY WHICH USA DOES. USA CAN AFFORD BECAUSE THEY HAVE HEAVY TAX PAYERS THAT IF CONGRESS ALLOW THEY CAN BE ABLE TO COME OUT THEIR CURRENT SITUATION BUT LIKEWISE GHANA, THE TAX SYSTEM IS NOT FULLY STREAMLINE YET. GHANA WILL NEED CONTINUE TESTREET NAMING , TECHNOLOGY, GOOD EMPLYMENT THE POPULATION, STREETNAMING, PROPER ADDRESSES AND ELIMINATE UNDERGROUND ECONOMY WHICH ENDED UP GREECE, SPAIN , PORTUGAL IN DEBTS
ADOVI 11 years ago
IT´S BETTER .THIS IS THE FUTURE . EVEN IF INTREST RATE IS 50% IT GOES TO GHANAIANS/AFRICANS .MORE BONDS PLEASE !!!!!!
IT´S BETTER .THIS IS THE FUTURE . EVEN IF INTREST RATE IS 50% IT GOES TO GHANAIANS/AFRICANS .MORE BONDS PLEASE !!!!!!
paa joe 11 years ago
Yield too high.
Yield too high.
Owura Kofi 11 years ago
Why won't foreign investors rush to scoop the bonds? A yield of 16.9% isn't easy to find anywhere in the developed world.
Even if they factor in the inflation rate and foreign exchange rate, they still see a great deal.
... read full comment
Why won't foreign investors rush to scoop the bonds? A yield of 16.9% isn't easy to find anywhere in the developed world.
Even if they factor in the inflation rate and foreign exchange rate, they still see a great deal.
These days, in other countries, a yield of 7% and up is considered by governments as too high. Anyone following events in the PIGS countries- Portugal, Ireland, Greece, and Spain would know what I mean.
The danger for the Ghana is, when the foreign investors sense any uncertainty or instability in the country, and decide to bailout before the maturity.
Malaysia, Russia, Argentina and others for had a rude awakening with foreign investors in their money markets. Ghana beware.
Debt restructuring defers repayment of debt at a premium.
The economic principle is to borrow within one's ability to repay. So long as loans are channelled into productive investment in the economy, borrowing is justified ...
read full comment
what does it tell you that 98% from outside the country? That no Ghanians bought their countrys bonds!
Mr Dan. The article says 98% not 100%. 100 minus 98 is NOT equal to zero.
I am wondering how the Government could pay back such a yield of 15%. Hopefully, government will channel the investment into productive ventures else the deficit will increase and our credit rating will be downgraded. A yield ...
read full comment
Anybody will buy this bond at such astronomical rate. This is bad for our country. Don't cry for me Argentina?
I like the Argentina link. We never learn, do we?
Government will sell more bonds to raise funds to finance the yield.
So long as investors (foreign and local) have confidence in the economy, they will buy the bonds as the yield is very attractive.
Bond theory 101 at work. Analyst expected 15 -15.5 % but the issue eventually goes for 16.9%. Woow. And then the article goes on to say " this shows investor confidence in Ghana is very high"
Does XYZ business undersatnd t ...
read full comment
The comment "the Ghanaian fixed income market is so attractive to investors DESPITE the expected decline in the yield curve" bertays a lack of understanding of bonds. The expectation that yields will fall should explain the h ...
read full comment
Poor theory
INITIATE DIASPORA BONDS JUST LIKE ISREAL, CHINA, INDIA AND RUSSIA WHICH CAN BE USE FOR INFRUSTRUCTURE IN THE COUNTRY SIMILA RATE. BOND ESTABLISH THE BOND MARKET. BOND SELLING IS VERY COMMON, THE USA, CANADA AND REST DOES IT. ...
read full comment
IT´S BETTER .THIS IS THE FUTURE . EVEN IF INTREST RATE IS 50% IT GOES TO GHANAIANS/AFRICANS .MORE BONDS PLEASE !!!!!!
Yield too high.
Why won't foreign investors rush to scoop the bonds? A yield of 16.9% isn't easy to find anywhere in the developed world.
Even if they factor in the inflation rate and foreign exchange rate, they still see a great deal.
...
read full comment