Treasury Bills (T-bills) will not be touched by the government as part of the Domestic Debt Exchange Program, according to Finance Minister Ken Ofori-Atta.
He claims that touching T-bills as part of government fundraising programmes and the government's own finances in the future will be suicide.
Mr. Ofori-Atta pointed out that the government had carried out a Debt Sustainability Analysis without taking T-bills into account.
We are unable to touch it. I can promise you that Treasury banknotes will always be sacred. Treasury bills are entirely excluded. The sustainability study has been completed. Treasury banknotes are not included in this. He reiterated, "That is how the government finances its activities.
He revealed this on PM Express Business Edition, which will be hosted by George Wiafe and appear on Joy News on January 19, 2023, at 9 p.m.
Defend Treasury Bills
After announcing in December 2022 that it would launch a domestic debt exchange program, the government has mainly depended on T-bills to finance its activities.
The government is required to offer a workable plan targeted at lowering the country's debt stock as part of the program, which is a key need for an agreement on the International Monetary Policy.
T-bill industry worries
Government said that Certain Non Market Securities issued by the Republic and Collectively Eligible Bonds issued by the Republic are not subject to this invitation to Exchange in a term sheet document on the "Eligible Bonds Under the Programme" that was published on the Finance Ministry's website. However, the Ghanaian government may occasionally engage in further exchanges and purchases involving these Treasury Bills and non-marketable securities.
This increased rumours that the government will soon intervene in T-Bills.
Ghana's debt has exploded.
According to the 2023 Budget, Ghana's total public debt as of September 2022 was $467.4 billion, or 75.9% of GDP. Compared to the end of December 2021, this figure increased from 352.1 billion.
The external circumstances that led to an increase in interest rates and a decline in the value of the local currency are primarily responsible for the growth in the debt stock.
Some have argued as a result of the development that our current problems are caused by the government's excessive borrowing.
Ken Ofori Atta, the finance minister, argues that these borrowed monies were used to promote various infrastructure projects.
blogpay
Total Comments: 0