{"id":345701,"date":"2017-08-17T13:52:15","date_gmt":"2017-08-17T13:52:15","guid":{"rendered":"http:\/\/citifmonline.com\/?p=345701"},"modified":"2017-11-10T10:42:38","modified_gmt":"2017-11-10T10:42:38","slug":"high-fiscal-deficit-unattractive-for-long-term-bonds-razia-khan","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2017\/08\/high-fiscal-deficit-unattractive-for-long-term-bonds-razia-khan\/","title":{"rendered":"High fiscal deficit unattractive for long term bonds – Razia Khan"},"content":{"rendered":"
Government would have to work to reduce its fiscal deficit in the short to medium term else risk investment ditching its long term bonds.<\/p>\n
This is the caution from the Chief Economist for Africa Global Research at Standard Chartered Bank, Razia Khan.<\/p>\n
According to her, the government would need to readjust its debt management strategy at the point where it realizes investors may not be interested in buying into the bonds it issues.<\/p>\n
\u201cWhat will bring about that kind of behavior is when they realize that the government of Ghana is not succeeding in reducing the size of the fiscal deficit. What it means is that it is going to run such a high deficit and it will have to start printing money to be able to finance that and in that environment, you don\u2019t want to buy a 5, 7 or 10 year bond. But rather a 91 day Treasury bill,\u201d Razia Khan remarked in a meeting with journalists in Accra.<\/p>\n
The continuous\u00a0rise in Ghana\u2019s fiscal deficit<\/a><\/strong><\/span>\u00a0has been cited as a major drawback to achieving set economic targets.<\/p>\n