Pulse.com.gh logo
Go


Anthony Akoto Osei Eurobond ditch shows lack of confidence in the economy

Investors shunned Ghana's Eurobonds over fears government will not achieve its fiscal targets in an election year.

  • Published: , Refreshed:
Dr Anthony Akoto Osei play

Dr Anthony Akoto Osei

The Minority spokesperson on Finance Dr Anthony Akoto Osei has said investors decision not to purchase Ghana's Eurobond shows a lack of confidence in the management of the economy.

Investors shunned Ghana's Eurobonds over fears government will not achieve its fiscal targets in an election year.

READ MORE: Parliament passes Public Financial Management Bill

The government will monitor markets and revive the sale “at the optimal time and the right conditions,” the Finance Ministry said in a statement on Thursday after concluding investor meetings in the U.K. and U.S. It also capped a buyback tender for $500 million of 2017 notes at $100 million, Bloomberg reported on Thursday.

The "Government will continue to build on this dialogue with international investors, while monitoring the markets and the IMF Board process with respect to the Third Review of the Program and will issue new notes at the optimal time and the right conditions,"the statement added.

However, Dr Akoto-Osei in an interview with Citi FM noted that “the negotiations with IMF are not finished and most investors look at that as a signal about the health of your economy.”

“When investors want to price risk that high for your country, it is an indication that there is some credibility problem," he added.

An emerging-markets economist at Standard Life Investments Ltd. in London,Nicolas Jaquier, told Bloomberg "the timing of the new issue was a bit puzzling, coming to issue a bond just before some of the pending issues with the IMF were being ironed out. That’s what kept many investors away.”

READ MORE: Ghana halts Eurobond sale as investors fret over gov't fiscal targets

The government had to ditch its last Eurobond issue of $750 million in February 2016, describing it as ill-timed.

However, Jacquier said investors staying way is not "an entire surprise."

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Ponzi schemes in Ghana These investments are Ponzi schemes in Ghana, so...bullet
2 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions public...bullet
3 Investment banks in Ghana Top 5 investment banks in Ghana and why...bullet
4 How to make money online Online jobs; how to make money on YouTube...bullet
5 Menzgold Ghana Investment company closes down its Gold Vault Marketbullet
6 Education Top 5 private high schools in Ghana according to WAECbullet
7 Salaries In 2018 Here are the dates public workers will be...bullet
8 Mutual funds in Ghana Top 5 mutual funds in Ghanabullet
9 Tax Hikes Majority to support tax increasebullet
10 BoG cancels acquisition of adb shares by Belstar & 3...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
4 Tech 6 reasons you should buy an iPhone SE instead of any of the...bullet
5 Support Finance minister buys Kantanka carbullet
6 New Discovery Ghana discovers new mineral, lithium in...bullet
7 Bozoma Saint John 10 quotes from Uber top official, Bozoma,...bullet
8 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
9 New Phone Nokia’s MWC 2018 event in 7 minutesbullet
10 New Phones Nokia MWC 2018 Event in 5 minutesbullet

Business