Govt to borrow GH¢78bn via T-bills in 3rd quarter
Government of Ghana has announced plans to borrow GH₵78.441 billion from the money market in the third quarter of 2024.
Out of this amount, GH₵53.807 billion will be used to rollover short-term maturities, ensuring the continuity of existing debt obligations.
The remaining GH₵24.633 billion will be fresh issuances aimed at meeting the government’s financing requirements for the period.
Weekly issuance of treasury bills
The borrowing will be facilitated through the issuance of 91-day, 182-day, and 364-day treasury bills on a weekly basis.
These issuances will be conducted via primary auctions, with settlement occurring one business day after the transaction date. The Bank of Ghana (BoG) has indicated that the gross borrowing amount is indicative, designed to guide market expectations, and may be adjusted as transaction details are finalized.
Quarterly and monthly financing programme
BoG has also noted that the issuance calendar is based on the 2024 domestic maturities and the Net Domestic Financing (NDF) targets outlined in the 2024 Budget Statement and Economic Policy.
The government may revise the calendar on a rolling monthly basis to reflect the full financing programme for the quarter, ensuring flexibility in response to market conditions and financing needs.
Govt borrowed GH₵115.77bn in 6 months
In the first half of 2024, the government borrowed GH₵115.77 billion from the treasury market, marking a 70.22% increase compared to the same period last year. During this period, investors submitted total bids worth GH₵116.07 billion, reflecting strong demand for government securities.
The money market has remained robust, driven by investors’ preference for treasury bills as a means to balance long-term risks associated with government bonds while securing competitive real returns.
Investors’ appetite for treasury bills remains strong
The sustained interest in treasury bills highlights the continued appeal of these instruments to investors, particularly in the context of Ghana’s ongoing economic challenges. As the government navigates its financing needs for the remainder of the year, the money market is expected to play a crucial role in providing the necessary liquidity while offering investors a secure and attractive option for their capital.
