He described the scenario as frightening and bad for the country’s economy in the future.
According to him, the government purchased GH33.08 billion in T-bills in the previous three months.
The government sold treasury instruments at an average yield of 35%.
The government secured GH12.60 billion at a 35.72% interest rate in December 2022.
In January 2023, the government seems to have lowered its appetite for short-term securities, mobilizing GH7.3 billion at a rate of 35.66%.Mr. Jackson highlighted that the government’s borrowing from T-bills increased dramatically to GH13.1 billion in February 2023 at a 35.50% interest rate.
Joe Jackson warns against this trend. “Should you be cautious in buying T-bills?” he quizzed in a tweet.
“Government of Ghana bought GH¢33.08 billion in the last three months. The weighted average interest rate was GH¢35.62% and will cost a whopping GH¢4.42 billion,” he noted.
The treasury market appears to be the government’s only source of borrowing at the moment, which explains the significant borrowing in the short-term market. To restructure around $30 billion of its $46 billion in domestic and foreign debt, Ghana has been talking to investors since November.
It just finished the first phase of a domestic reorganization, with investors trading 83 billion cedis ($6.5 billion), or 64% of holdings, for new securities, as opposed to a target of 80% overall. Nigeria intends to begin “substantive” conversations with overseas bondholders and their counsel in the coming weeks, according to Finance Minister Ken Ofori-Atta on February 16.
