Pulse.com.gh logo
Go


Debt-laden Ghana's debt to hit GHC130 bil by end of 2015

The debt trajectory for the second half of the year, which includes the floating of more domestic bonds treasury bills, and other long term government instruments, will all ensure that government's debt hit GHC50 billion

  • Published: , Refreshed:
Finance Minister, Seth Terkper play

Finance Minister, Seth Terkper

Government has already accrued over GHC25 billion in the first half of the year and is set to borrow GHC25 billion more in the second half of the year. The minister of finance, Seth Tekper says the money will be used to service increasing interests of previous debts and planned infrastructure development.

The debt trajectory for the second half of the year, which includes the floating of more domestic bonds treasury bills, and other long term government instruments, will all ensure that government's debt hit GHC50 billion by the end of the year.

The finance minister, on Wednesday August 13, announced government's decision to float a five-year domestic bond to raise GHC500 million in the month of August.

Experts have cautioned government against the excessive borrowing as the current debt trajectory will see government borrow more that GHC50 billion by the end of 2015. This will then escalate Ghana's total debt, which many have described as dire, from the current GHC90 billion to over GHC130 billion by the end of 2015.

August is set to be the month in which government will borrow the most. Pulse.com.gh aggregation of  all the loans and instruments reveal that government will borrow over GHC5.5 billion in August alone. This includes the GHC500 million 5-year domestic bonds, the $1.8 coca syndicated loan and the $1.5 billion Eurobond.

Government's borrowing from the domestic money market is crowding out local businesses on the local money market since banks find it a more frugal enterprise to lend to government instead of local businesses. In a press briefing with the press, the minister of finance charged local banks to diversify their portfolios with both short term and long term government instruments.

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 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 Banking Crises Joe Jackson urges BoG to ‘rate’ banks to restore confidencebullet
3 Salaries In 2018 Here are the dates public workers will be paid in 2018bullet
4 Tax Policy Gov't weighs in on controversial MoMo taxbullet
5 Duncan Amoah Fuel prices up by 2%; COPEC calls for dialogue on...bullet
6 Banking In Ghana Stranded customers of First Allied Savings &...bullet
7 Education Top 5 private high schools in Ghana according to WAECbullet
8 How to create a verified PayPal account Learn how to...bullet
9 Unibank Collapse Shareholders of uniBank unhappy with...bullet
10 Breaking Otabil finally breaks silence on banking...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Former Capital Bank staff grills pork for survivalbullet
3 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
4 Money Alert Meet Africa's richest womanbullet
5 Plane Crash Starbow suspends operations following plane crashbullet
6 Support Finance minister buys Kantanka carbullet
7 New Discovery Ghana discovers new mineral, lithium in...bullet
8 Bozoma Saint John 10 quotes from Uber top official,...bullet

Business