The government of Ghana has announced its intention to borrow GH¢2.08 billion from the treasury market this week. The borrowing will be done through the issuance of 91-day and 182-day bills, which are short-term securities that mature in three and six months respectively.
The target amount for this week is lower than the GH¢3.4 billion that the government sought to raise last week. The reason for the lower target is to refinance GH¢1.98 billion of existing bills that are due to expire soon.
Analysts have expressed optimism that the government will be able to achieve its target this week, as the liquidity situation in the market has improved.
They also expect that the government will offer lower interest rates on the short-term bills, as it takes into account the recent decision of the Monetary Policy Committee to maintain the policy rate at 13.5%.
The government has been struggling to meet its borrowing targets for the past three weeks, as investors have demanded higher yields amid inflationary pressures and fiscal challenges.