Government postpones issuance of 5-year Treasury bond

setGovernment has postponed the issuance of a 5-year Treasury bond it announced earlier this month.

The Finance Minister early this month announced government will issue the bond to raise some 500 million cedis for infrastructural developments.

But a statement copied to Joy News from the Finance Ministry says the ministry and the Bank of Ghana (BoG) have postponed the issuance of the bond due to market developments.

According to the ministry, the BoG and its Bookrunners remain committed to Ghana’s medium to long term debt management strategy.

The statement added that the ministry will keep the market updated on developments with this issuance.

Ghana’s total debt is hovering around 90 billion cedis.

Economists have expressed worry about the country’s level of borrowing, suggesting the debt levels are unsustainable.

Government has insisted it is doing what it calls smart borrowing.

The Finance Minister has maintained that government is now spending any loans acquired on projects that can refinance the loans.

When the 5-year bond is eventually issued, the country’s public debt will certainly inch up.

source: myjoyonline.com