General News of Thu, 8 Jun 201713
US$2.25bn bond didn’t add to Ghana’s debt – Ofori-Atta tells Minority
The Finance Minister Ken Ofori-Atta says the controversial bond raised by government earlier this year is a net debt neutral which does not add to Ghana’s debt stock.
Responding to Parliament’s demand to furnish it with details of the the 2.25 billion dollar bond, he chronicled its benefits, saying it is impacting on the economy positively.
According to the Finance Minister, the bond has brought great relief to the country, claiming that the cost of borrowing for Ghanaians, especially businesses, has gone down and “it is our expectation that this downward trend will continue and that by the grace of God the negatives that have followed the bonds will not stem the easing of the cost of borrowing nor scare investors away.”
He added that the bond has also strengthened the country’s current accounts and built its international reserves. “The cedi to US dollar which was 4.46 in February is now appreciated to 4.19 as at April 2017”, Mr. Ofori Atta said.
He reiterated in his bid to avoid all doubts that the country has gained from the transaction. “We have raised the highest amount in the history of this country in single day in Africa. We have extended the tenure of the domestic debt to 15 years which is another history of the Akufo-Addo government.”
The Finance Minister added that “government under these bonds initiative has saved the country of about 600 million cedis in interest payments and reduce re-financing cost associated with short term borrowing.”