It said the government would however issue the notes at the right time with the right market conditions.
Minister of Finance Seth Terkper and a team of officials from the Ministry of Finance, Bank of Ghana, and their advisors met with institutional investors in Britain and America on August 1-3 to raise funds primarily to refinance the balance of Ghana’s maiden Eurobond of 750 million dollars issued in 2007 and other outstanding debts.
Although the release noted that the delegation had constructive engagements with investors and received positive feedback from them on the ongoing fiscal consolidation process and Ghana’s turnaround story, it hinted that the issuance of the sovereign instrument would not take place just yet.
“The Government will continue to build on this dialogue with international investors while monitoring the markets and the IMF Board process with respect to the Third Review of the Program and will issue new notes at the optimal time and the right conditions,” the release indicated.
To redeem the fast maturing 2017 Eurobond, the statement said the government had decided to proceed with a capped cash tender offer up to 100 million dollars issued in 2007 in line with the country’s buy-back program.
“The Sinking Fund will be used to purchase these securities as indicated in the 2016 Review of Budget presented to Parliament in July 2016,” the statement added.
The level of Ghana’s sovereign debt dropped to 64 percent of the Gross Domestic Product as of May 2016 from above 70 percent previously.
Meanwhile, Ghana’s parliament on Wednesday passed the new Bank of Ghana Amendment law to cap the central bank’s financing of government debt at 5.0 percent. Enditem
Source: Xinhua/News Ghana