The government has missed out on its treasury bills target for the second consecutive time after recording an over-subscription.
According to its latest auction results, the government could not meet its target of GH¢5.980 billion.
The sale of the short-term instruments resulted in an under-subscription of GH¢2.305 billion as the government managed to sell GH¢3.674 billion.
During the auction on October 7, 2024, and issuance on October 7, 2024, GH¢2.911 billion was secured for the 91-day bill.
However, the government accepted GH¢572.95 million for the 182-day bill and GH¢189.95 million for the 365-day bill.
Last week, the government sold a total of GH¢4.767 billion.
Interest rates were set at 25.44% for the 91-day bill, 26.80% for the 182-day bill, and 28.51% for the 365-day bill.
According to the Bank of Ghana’s results, all bids tendered in this week’s auction were accepted.
The government has set a target of GH¢4.565 billion for its next auction.
However, an Economist at the University of Ghana, Dr. Lord Mensah, has taken a swipe at the government for the manner in which it is borrowing.
According to him, the government is disregarding the treasury bills issuance calendar and borrowing anyhow.
Treasury bills have become the government’s primary source of borrowing since it no longer has access to the international capital market.
On his X page, the economist said: “If you want to know how low the economy has sunk, look at the frequency and the volumes of T-bills issued by the Ghana government. This government has thrown away the treasury bill issue calendar and they’re doing their own thing. Borrowing left and right from the money market.”
SSD/MA
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