The Bank of Ghana (BoG) supported the government to refinance GH¢2.83 billion 5-year bond expected to have matured on November 28, 2022.
Joy Business is learning that since August 2022, the government has been repaying maturities on notes and bonds with support from the BoG. This is because there’s no market appetite for rollovers.
The unfavourable pricing conditions are also a major concern as the yields have been hovering around above 30%.
The government’s difficult fiscal position has compelled the Central Bank to provide financial support to the budget.
In most cases, it is structured as an overdraft.
Meanwhile, 26% of the 5-year bond were foreign holders, whereas the rest of the holders were both institutional and retail investors.
Govt T-bills sale oversubscribed
Despite the financial challenges facing government, the government for the second week running recorded an oversubscription of Treasury bills sale, according to data from the Bank of Ghana.
It secured a total of GH¢2.39 billion, 9.9% more than the targeted amount of GH¢2.176 billion.