The International Monetary Fund Mission Chief, Stephane Roudet, has shot down fears of the government’s increasing debts through the current interest rates on treasury bills.
According to him, the increasing rate of interest on treasury bills does not come with great concern to the Fund.
He added that it is consistent with its debt sustainability analysis for
“We really have no concerns about the current interest rate. It comes as no surprise to us that interest rates will be where they are today slightly below 30% because inflation is at 40%, the policy rate of the Central Bank is also around 30% so it is no surprise and it is fully in line with our expectations for the programme. That type of cost for the government is fully consistent with achieving debt sustainability in the medium term,” he said during a joint press briefing by the IMF and the Finance Ministry.
Treasury bill interest rates continue upward trend, currently at 32.8%
Interest rates for treasury bills are still increasing despite caution that this may make maturities expensive for the government.
The rates have been increasing for the greater part of the year.
Despite the high rates, the government has witnessed oversubscriptions in recent times except this week when it saw a slight undersubscription.
Interest rates are currently between 28.79% and 32.82%.
The government secured GH¢2.49 billion from its latest treasury bill auction held on September 29, 2023.
The results showed that the bills were undersubscribed marginally by GH¢70.12 million away from the set target of GH¢2.570 billion.
According to the results from the Bank of Ghana, all bids tendered in this week’s auction were accepted.
The target was however undersubscribed.
The 91-day bill saw a total subscription of GH¢1.88 billion, GH¢484.17 billion was accepted from the 182-day bill and GH¢131.16 million was accepted from the 364-day bills.
The government has set its next auction target at GH¢2.109 billion.
SSD/NOQ
Watch the latest edition of BizTech below:
Ghana’s leading digital news platform, GhanaWeb, in conjunction with the Korle-Bu Teaching Hospital, is embarking on an aggressive campaign which is geared towards ensuring that parliament passes comprehensive legislation to guide organ harvesting, organ donation, and organ transplantation in the country.
Stephane Roudet is the IMF Mission Chief to Ghana
