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T-bills: Gov’t to borrow GH¢2.73 this week

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Government will on May 19, 2023, hold an auction to buy treasury bills for GH2.732 billion.

The target is anticipated to be produced by the treasury bills with maturities of 91, 182, and 364 days.

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In its most recent auction on May 15, 2023, the government this week sold Treasury Bills for GHC 2.78 billion.

The target for the auction was GH¢3.33 billion.

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Even though this was a bit higher than what the government got last week, it was GH¢550 million short of the target.

Interest rates have also slightly increased to an average of between 20.43 percent to 27.59 percent.

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According to the auction results from the Central Bank, the government secured GH¢2.31 billion from the 91-day bill, GH¢355.26 million from the 182-day bill, and GH¢115.60 million from the 364-day bill.

Interest rates, however, increased from 20.25 percent to 20.43 for 91-day bills from 22.82 percent to 22.96 percent for the 182-day bill, and from 27.36 percent to 27.59 percent for the 364-day bill.

However, the Minister of State responsible for Finance, Mohammed Amin Adam has disclosed that the International Monetary Fund will likely approve the first tranche of a $600 million loan for Ghana by Wednesday, May 17, 2023.

According to him, the government expects the IMF Executive Board to approve the credit facility after meeting all pre-conditions and requirements particularly after financing assurances have been granted by official creditors, China and the Paris Club.

“We expect a deal on Wednesday. With the disbursement, there is going to be $600 million as a first tranche just immediately after the approval,” he told Reuters via phone.

Dr Amin Adam was however optimistic that the funds will be disbursed into the Bank of Ghana account within a week of the IMF Board’s approval.

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