Business News of Sat, 6 Aug 201611
Failure to raise Eurobond proof of ailing economy - Akoto Osei
The Minority Spokesperson on Finance, Dr. Anthony Akoto Osei, says the failure of government to raise US$700 million from its 4th Eurobond outing is glaring evidence that Ghana’s economy is in a bad shape.
Speaking to Citi News, Dr. Anthony Akoto Osei noted that “the negotiations with IMF are not finished and most investors look at that as a signal about the health of your economy.”
He explained why potential investors pressed for expensive interest rate saying “when investors want to price risk that high for your country, it is an indication that there is some credibility problem.”
Finance minister Seth Terkper early this week [August 1-3, 2016] led a team of government officials as well as financial advisors to convince investors in London and New York to patronize Ghana’s next Eurobond.
But a statement from the Finance Ministry on Thursday said government has put the issue on hold till market conditions are right.
The Finance Ministry was seeking to raise US$700 million, majority of which was to be used to retire Ghana’s first Eurobond which matures next year.
Dr. Akoto Osei said that government’s decision to freeze its pursuit of the latest Eurobond shows the economy is in real trouble.