Treasury Bills overfunded by GHS 589 million
Government saw strong demand for its short-term debt instruments, with the recent issuance of 91-day, 182-day, and 364-day Treasury Bills oversubscribed by GHS 589 million.
The Finance Ministry raised a total of GHS 3,348 million from primary dealers, exceeding its target of GHS 2,759 million.
The 91-day Treasury Bill received bids worth GHS 2,086 million, with the government accepting GHS 2,075 million, while the 182-day Treasury Bill received bids worth GHS 415 million, with the government accepting GHS 398 million.
The 364-day Treasury Bill received bids worth GHS 876 million, with the government accepting GHS 875 million.
The Finance Ministry collected GHS 3,348 million in bids from primary dealers, with the highest interest rate of 35.9% for the 91-day and 182-day Treasury Bills and 35.8% for the 364-day Treasury Bill.
Despite the strong demand, returns on Treasury Bills remain negative, as the country’s inflation rate stands at 54.1% as of December 2022.
The government is planning another issuance of 91-day and 182-day Treasury Bills on February 18, 2023, seeking to secure GHS 1,708 million in fresh funding to meet its short-term financing needs.
This additional debt is expected to further increase the country’s already high public debt, which currently stands at over 100% of GDP.
Source: Norvanreports