{"id":189859,"date":"2016-02-15T14:37:16","date_gmt":"2016-02-15T14:37:16","guid":{"rendered":"http:\/\/4cd.e16.myftpupload.com\/?p=189859"},"modified":"2016-02-15T14:37:16","modified_gmt":"2016-02-15T14:37:16","slug":"%c2%a2500m-5-year-bond-is-necessary-to-tame-budget-deficit-dr-bokpin","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2016\/02\/%c2%a2500m-5-year-bond-is-necessary-to-tame-budget-deficit-dr-bokpin\/","title":{"rendered":"\u00a2500m 5 year bond is necessary to tame budget deficit – Dr. Bokpin"},"content":{"rendered":"
Economist, Dr. Godfred Bokpin has described as necessary, government\u2019s decision to issue a 500 million 5 year fixed rate bond this month.<\/p>\n
He tells Citi Business News<\/strong> the move will enable government meet the funding gap which has contributed to the country\u2019s budget deficit.<\/p>\n [contextly_sidebar id=”KaJHbWODjEhl5iaqiSh9jbjmes80bUZ3″]Figures released by the Finance Ministry show\u00a0that the country\u2019s budget deficit has reduced from 11.5 percent to 7 percent between 2012 and 2015.<\/p>\n A situation some analysts have attributed to the increased government\u2019s expenditure compared to revenues.<\/p>\n An issuance calendar released by the Ministry of Finance indicated that government intends to borrow about 6 million cedis for the first half of the year through bonds, treasury bills and notes.<\/p>\n Though Dr. Bokpin believes the move is likely to crowd out the private sector in accessing credit, he maintains government has no other option than to go ahead as it will be able to pay outstanding debts that continue to impact on the economy,<\/p>\n \u201cThe implications are quite clear, government is competing for credit with the private sector in the same market, and chances are that the private sector will be crowded out. What is important is to make sure that this borrowing does not exceed the funding gap, once they are within the budget, then that has to be accommodated largely,\u201d he observed.<\/p>\n \u201cAlready the market is quite tight and if government is asking economic agents to trade off consumption for five years, then chances are that they must be paying something higher to reflect the maturity of the security,\u201d Dr. Bokpin added.<\/p>\n –<\/p>\n By: Pius Amihere Eduku\/citifmonline.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" Economist, Dr. Godfred Bokpin has described as necessary, government\u2019s decision to issue a 500 million 5 year fixed rate bond this month. He tells Citi Business News the move will enable government meet the funding gap which has contributed to the country\u2019s budget deficit. [contextly_sidebar id=”KaJHbWODjEhl5iaqiSh9jbjmes80bUZ3″]Figures released by the Finance Ministry show\u00a0that the country\u2019s budget […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,171,11],"tags":[],"yoast_head":"\n