The government of Ghana is seeking to borrow GH¢17.8 billion between May and August 2020.
According to the Issuance Calendar, GH¢15.8 billion is to rollover or settle maturities and the remaining GH¢2.03 billion is a fresh issuance to finance government projects.
The 91-Day Treasury bill dominates the issuance calendar with about GH¢8.9 billion expected to be raised.
A total of GH¢1.85 billion and GH¢1.75 billion are expected to be raised from the issuance of the 1-Year Note and 182-Day Treasury bill.
7-Year, 10-Year, and 20-Year bonds will also be issued during the three months.
GHS1 billion, GH¢800 million and GH¢287.87 million are expected to be issued in July and August 2020, respectively.
Per the calendar, the government said it aims to build benchmark bonds through the issuance of the instruments.
The 91-day and 182-day bonds will be issued weekly while the 364-day bill will be issued bi-weekly.
Twos-year up to 10-year securities will be issued through the book-building method.
The issuance of the 20-year bond as a shelf offering will be re-opened based on investors request and on market conditions.
The government said: “It is our expectation that this 2020 June to August Calendar meets the requirements of market participants. We assure all stakeholders and the general public that we continue to strive for greater predictability and transparency in the domestic bond market.”
Ghana’s total public debt increased by US$300 million in March 2020 to US$43.4 billion, the March 2020 Bank of Ghana Summary of Economic and Financial Data revealed.
The debt was more than half the total size of the country’s economy.
In cedi terms, the nation’s debt jumped from GH¢228.4 billion in February 2020 to GH¢236.1 billion in March 2020, about 59.3% of Gross Domestic Product.
The external debt component was US$22.9 billion (GH¢124.8 billion), representing 31.4% of the total debt.
The domestic debt component was GH¢111.3 billion, representing 28% of GDP.
Interest payments are expected to hit GH¢23 billion by the end of December 2020.
Source: Class FM
President directs MMDAs, agencies to buy locally assembled vehicles
President Nana Akufo-Addo has directed Metropolitan, Municipal, District Assemblies (MMDAs) and other Government agencies to prioritize locally assembled vehicles when making buying decision for new vehicles.
Chief of Staff, Akosua Frema Osei-Opare made this known in a statement. According to the statement, the directive takes effect from July 2020.
It says the Ministry of Trade would provide information about assembling vehicles in Ghana.
German auto manufacturers, Volkswagen, Chinese Sinotruck and Japanese Toyota are three of the companies assembling vehicles in Ghana.
The statement urged all MDAs, MMDAs, and other Government establishments to comply with the policy.
Source: Daily Guide Network
MTN extends fee waiver on 100 cedis MoMo for another 3 months
Telecommunications giants, MTN Ghana has extended its fee waiver for mobile money transactions of 100 cedis and less for three more months.
In a statement by the company, they said the waiver will now end in September.
MTN initiated this initiative to encourage Ghanaians to do more mobile transactions amid the COVID-19 pandemic.
“Mobile Money Limited has extended the fee waiver on MoMo on-net transfers up to Ghs100 daily till Sept 30, 2020. The extension of the MTN and Bank of Ghana COVID-19 initiative gives opportunity to MoMo customers to continue sending money transfer value up to GHS100 daily to MoMo wallets for free,” portions of MTN’s statement said.
In addition to extending the fee waiver, MTN says the revised limits on daily transactions and wallet balances on mobile money will remain the same as approved by Bank of Ghana in March.
“Customers with a daily limit of GHS300 can still transact up to an amount of GHS1, 000, whereas those with daily limits of GHS2, 000 and GHS5000 can transact with values of GHS5, 000 and GHS10, 000 respectively. Also, customers with wallet balance limits of GHS1, 000, GHS 10,000 and GHS20,000 can continue to hold up to GHS2, 000, GHS15, 000 and GHS30,000 respectively in their wallets,” the statement said.
It added, “Customers with monthly aggregate transaction limits of GHS20,000 and GHS 50,000 will continue to enjoy unlimited access. Mobile Money Limited has extended the fee waiver on MoMo on-net transfers up to Ghs100 daily till Sept 30, 2020.”
Ghana spends GH¢6.40bn on interest payments in Q1
The government of Ghana spent GH¢6.40bn on interest payments in the first quarter of 2020.
This represented 1.7% of Gross Domestic Product (GDP) and in line with the envisioned target of GH¢6.42 billion.
According to the Bank of Ghana, total interest payments constituted almost 64% of domestic revenue, undermining fiscal flexibility.
While domestic interest payments outturn was close to the proposed target, external interest payments were somewhat above the planned target due to additional payments not factored in the programme targets, it said.
Together with wages and salaries, they accounted for over 120% of domestic revenue, suggesting a lack of fiscal space and inherent rigidities in the budget execution.
Wages and salaries amounted to GH¢6.50 billion (1.7% of GDP), above the envisioned target of GH¢5.94 billion (1.5% of GDP).
The situation means that government depends on grants and other sources of funds to finance capital projects, raising concerns going forward.
In 2020, the government is expected to spend GH¢23 billion on interest payments but that may not be so because of the coronavirus pandemic.
Some multilateral institutions and sovereign nations that support the government budget may cut loan repayment schedule or cancel some debts owed them.
Source: Class FM
Showbiz Gossip5 days ago
Woman Openly Allows Man To F!nger Her In A Bus (WATCH VIDEO)
NEWS7 days ago
4 Regions To Be On Partial Lockdown Due To Covid-19 Spike In Ghana
NEWS2 days ago
Information Minister reveals close contact of Akufo-Addo who tested positive for coronavirus
NEWS4 days ago
Full List of Senior High Schools in Ghana with COVID-19 Cases so far
Entertainment news1 day ago
Shatta Wale Blesses Medikal With Bundles Of Cash, Amounting To GHC10,000 As A ‘Breakfast’ Gift
NEWS3 days ago
Abbeam Danso reveals deep secret why all Ghanaian youths are going to Benin for sakawa
NEWS2 days ago
Kenndy Agyapong Reveal To Expose Bishop Who Is A Gay & Import Cigarette Into The Country
NEWS5 days ago
Education Minister reveals why he can’t Close down schools