The Government of Ghana is set to borrow GH¢3.33 billion from the treasury market on Friday May 12, 2023, to partly refinance maturities worth GH¢2.31 billion. Part of the amount will be used to settle coupon payments of the pension bondholders .
This amount will be issued via the 91-day, 182-day and 364-day Treasury bills . Analysts predict that investors will bid higher yields on liquidity squeeze as inflation data for April 2023 is expected to be released on May 10, 2023 . However, the $750 million loans approved by the Parliament of Ghana last week may help slow down the rise in money market yields .
The Ghanaian government has been borrowing money from the treasury market for a while now and this move is not surprising . The government has been borrowing money to finance its budget deficit and other projects . The government has also been borrowing money to pay off its debts . The government has been criticized for borrowing too much money and not using it wisely . However, the government has defended its borrowing saying that it is necessary for development .