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Saturday, March 1, 2025

Ato Forson ‘brags’ after interest rates on T-bills drop to 20% in 50 days of government

Ato Forson touts his government's achiements Ato Forson touts his government’s achiements

Borrowing on the treasury bill market has seen a massive drop in interest rates in the last few auctions.

The Minister of Finance, Cassiel Ato Forson, breaking the news of the recent drop, noted that this was a historic feat.

According to him, in just 50 days of government, the short-term instrument has seen a significant reduction in its rate.

On February 28, 2025, he wrote on his X page: “In just 50 days under President Mahama’s leadership, treasury bill rates have seen a historic decline.”

According to him, the “91-day T-bill slashed from 28.34% to 20.79% – a jaw-dropping 760 basis points drop!”

“182-day T-bill down from 28.96% to 22.98% – a solid 600 basis points reduction!, and the 364-day T-bill plummets from 30.17% to 22.69% – a staggering 750 basis points cut!”

The reduction in the rates will mean that the government’s debt to investors upon maturity of the bills is lower.

The government is aiming to reduce the rates further to below 15%.

In the past few weeks, treasury bills have seen very high demand as the government continues to achieve over 100% subscriptions in all its auctions.

This is partly responsible for the drop in interest rates.

See his post below

SSD/EK

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