The Ministry of Finance and the Bank of Ghana have suspended the issuance of a 5-year Treasury bond it announced earlier this month due to market developments.
Ghana’s Finance Minister, Mr. Seth Terkper early this month announced government will issue the bond to raise some 500 million cedis for infrastructural developments.
Some market analysts believe the move was taken to halt government’s ballooning debt stock as it reached GHS90 billion July.
However, Mr. Terkper has explained that government is engaging in “Smart Borrowing” by going for loans with long term maturity period to clear debts that have relatively short term span.
He has further explained that long term facilities will be used for infrastructure developments that have the potential to refinance itself in the long run.
