Gov’t Borrows GH¢19,087.87m In First Quarter

Ken Ofori-Atta, Finance Minister

SAYS it plans to borrow an amount of GH¢19,087.87 million this first quarter,
of which GH¢15,685.81 million would be used to rollover maturities, while the
remainder of GH¢3,402.06 million goes to take care of government financing.

According to
the Ministry of Finance which disclosed this, total revenue and grants for 2020
was projected to rise to GH¢67.0 billion (16.8% of GDP), up from a projected
outturn of GH¢54.6 billion (15.8% of GDP) for 2019, while resource total expenditure
(including clearance of arrears) was projected at GH¢85.9 billion (21.6% of

The key
drivers of expenditure growth include the wage bill, interest payments, one-off
costs associated with the 2020 presidential and parliamentary elections, full
funding of government flagship programmes and security. The next
Monetary Policy Committee (MPC) meeting scheduled for January 27 to 30, this
year, would find out how much the country’s total public debt had reached as at
end December last year.

This will be
announced on Friday, January 31, 2020.

In January
last year, the total public debt was GH¢176.6 billion, representing 51 per cent
of GDP followed by GH¢180.7 billion in February, representing 52.2 per cent of
GDP and GH¢198.0 billion in March which represented 57.2 per cent of GDP.

In April of
2019, the total debt clogged GH¢198.5 billion (57.4 per cent of GDP) and
continued to GH¢200.0 billion (57.8 per cent of GDP) in May, GH¢203.9 billion
(58.0 per cent of GDP) in June and GH¢205.5 billion (59.2 per cent of GDP) in

For August,
it recorded GH¢208.4 billion (60.3 per cent of GDP) and GH¢208.6 billion (60.3
per cent of GDP) in September.

Per the latest
calendar, government said it aimed to build benchmark bonds through the
issuance of the 91-day and 182-day bills on a weekly basis; the 364-day bill on
a bi-weekly basis, also through the primary and auction, with settlement being
the transaction date plus one working day. It said securities of two-year up to
seven-year up will be issued through the book-building method; while the
issuance of the 20-year bond as a shelf offering would be re-opened based on
investors’ request and market conditions.

It further announced that it may announce tap-ins/reopening of other existing instruments depending on market conditions.

BY Samuel Boadi