Government has issued a GH¢440 million 5 year bond in a fresh a bid to use longer term maturities to restructure its rising debt and finance some infrastructural projects.
[contextly_sidebar id=”V7Dpz4avdvGdFNvjlvjgIN9wXTFV1UKX”]The coupon rate for the bond which is open to foreign and domestic investors is expected to reflect the highest competitive bid accepted at the auction for the security.
It is feared that the risks posed to the economy could push investors to demand a higher interest rate on the bond and make government’s bigger.
Government had early in the week expressed fear that former Deputy Governor of the Bank of Ghana Dr. Mahamadu Bawumia’s comments about government’s inability to pay its debts may scare investors away.
“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,” a deputy finance minister, Cassiel Ato Forson argued.
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By: citifmonline.com/Ghana