The government plans to raise GH¢6.228 billion in its latest auction on November 15, 2024.
However, a Private legal practitioner, Jonathan Amable, has filed an application at the Supreme Court seeking to immediately halt the government’s issuance of treasury bills.
According to the writ, which was sighted by GhanaWeb, the plaintiff argues that the government can only borrow or issue treasury bills if it secures prior approval from Parliament.
The application was filed at the Supreme Court Registry on November 11, 2024.
Jonathan Amable contends that the government’s actions are contrary to the provisions in the 1992 Constitution and warns that the continued issuance of treasury bills without parliamentary approval will have severe consequences for the economy.
The defendant in the case is the Attorney General of the Republic of Ghana.
The lawsuit implies that if the government goes ahead to issue treasury bills, it would be deemed unconstitutional.
The government of Ghana secured GH¢5.824 billion in its last auction, exceeding its target of GH¢5.623 billion by GH¢201 million.
The auction on November 8, 2024, saw an exponentially high demand for the 91-day bills, securing bids amounting to GH¢5.10 billion.
The 182-day and 364-day bills secured bids worth GH¢560.07 million and GH¢157.98 million, respectively.
Interest rates for the 91-day bills stand at 26.8%, while interest rates for the 182-day and 364-day bills are at 27.6% and 29.1% respectively.
This will be the fifth consecutive week that the government has exceeded its auction targets.
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SSD/MA
