Government fears investors may shy away from the 5 year domestic bond it intends to issue today March, 26, 2015.
According to a deputy finance minister Cassiel Ato Forson investors may not patronize the bond due to the recent analysis of the economy by a former Deputy Governor of the Bank of Ghana Dr Mahamadu Bawumia in his lecture on the IMF deal.
‘You know what this has done to Ghana, we are going to the bond market, we have a 5 year bond which we are auctioning today and we were hoping it will b successful, but he has ended up sending fear and panic among investors and this is not good.’ He said.
[contextly_sidebar id=”PXl6Otj4ZCDN5P4zzMrQDPVFWDNzkcg3″]The Bank of Ghana will today auction a 5- year fixed rate bond on behalf of government.
Government intends to raise GHȻ440 million from the auction to refinance government’s debts.
Apart from paying its maturing debts, the funds raised from the bond will also be used to finance government’s liquidity challenges.
The bond which will be available to both resident and non-resident investors will be the second bond the Bank of Ghana is issuing this year.
The first bond was successful and was oversubscribed.
But Cassiel ato forson fears today’ auction may not be successful due to recent comments made by Dr Bawumia on the economy.
‘I think he must apologize because he has sent the wrong signal to investors and this could affect the success of this bond’. He said.
By: Vivian Kai Lokko/citifmonline.com/Ghana