Ghana’s debt management strategy is on course and working in line with the government’s objectives, the ministry of finance said in a release here on Wednesday.
One of the strategies, it said, was to substitute short-term debts for long-term ones to ease the debt-servicing and repayment burdens on the budget.
“Our debt strategy is well anchored on debt sustainability, improved real rates, and a stable macroeconomic environment,” the release said.
In line with this, the country issued a 20-year bond on the market last Thursday for 162 million Ghana cedis (30 million U.S. dollars) at a 20.2 percent yield, which received low participation, giving rise to fears among analysts that confidence in the economy might be dwindling.
The statement from the finance ministry, however, countered that the lower participation was due to the better price offered on the issuance.
“Ghana’s issuance of a 20-year bond is in line with its debt strategy not to borrow at any cost. As a country, we insist on being fiscally prudent and borrowing at the lowest rates,” the statement said.
The West African country’s public debt quickened to reach 200 billion Ghana cedis (38 billion U.S. dollars) by the end of May, compared with the 154.1 billion cedis recorded in the same month last year.
It has also issued an additional 11 billion cedis (2.14 billion dollars) to finance the clean-up of the banking industry. Enditem