Govt to Begin Issuance of Domestic Bonds

The government says it will immediately resume the issuance of domestic bonds to finance its budget as soon as the prevailing restriction expires.

The Finance Minister, Dr Cassiel Ato Forson, envisions that the expiration will pave the way for the government to drastically reduce its dependence on Treasury bills and allow for the issuance of new, longer-dated domestic bonds.

“This comes at a time when inflation is low, investor confidence has improved, and the macroeconomic environment is strong, supported by a robust medium-term debt management strategy and significant buffers.”

The three-year restriction measure was imposed in 2023 to prevent the government from issuing new bonds following the debt default that preceded the Domestic Debt Exchange Programme (DDEP).

He noted that the government has exhibited commitment to honouring all coupon payments and obligations under the restructured bonds, demonstrating its credibility, fiscal discipline, and commitment to responsible debt management.

“President John Dramani Mahama’s administration is once again deeply grateful to the Ghanaian people for their forbearance and cooperation during the difficult period,” he assured.

Story by Hajara Fuseini

Click to read more: https://opemsuo.com/author/hajara-fuseini/