Gov’t puts on hold issuance of Ghc700m 3-yr bond

Government has put on hold plans to issue a Gh¢700 million three-year bond this month.

The bond forms parts of government’s plan to raise over 170 million cedis between January and March.

Government last month raised over 360 million cedis worth of bids for a new five-year domestic bond at a coupon yield of 18.75 percent.

Some Economists had earlier expressed fear government will not meet its target due to uncertainty on the part of investors.

An Economic Analyst with Databank, Courage Martey told Starr Business: “Last year we had fiscal deficit going back to 7% and above and then the debt GDP ratio has also gone back clocking the 70% mark…

“These are all risks to the inflation outlook as the central bank confirms that the horizon has shifted from 2017 to 2018 and if you put this together with the fact that we haven’t seen a new government budget yet for the short medium term then it tells you that the level of uncertainties is just too high for a lot of investors to accommodate, and so you see the shortfalls in the amount that came in as the 5-year bond issuance”.