The Government of Ghana has suspended the plan to issue a Gh¢700 million three-year bond in February 2017.

This was part of government’s plans to issue 17.4 billion cedis ($4.1 billion) through bonds and treasury bills and other government securities.

The funds were expected to be used for government finances and debt restructuring in the first three months of 2017.

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Other uses will include a rollover forecast maturities and the building of buffers for liability management.

Of this 15,504.43 million cedis will be used to rollover forecast maturities and the remaining 1,895.57 million cedis will be used to meet Government’s financing requirements and build buffers for liability management.

The government in December 2016 raised over 360 million cedis worth of bids for a new five-year domestic bond at a coupon yield of 18.75 percent.

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Some Economists had earlier expressed fear government will not meet its target due to uncertainty on the part of investors.

An Economic Analyst with Databank, Courage Martey told Accra-based Starr FM that: “Last year we had fiscal deficit going back to 7% and above and then the debt-GDP ratio has also gone back clocking the 70% mark.”

“These are all risks to the inflation outlook as the central bank confirms that the horizon has shifted from 2017 to 2018 and if you put this together with the fact that we haven’t seen a new government budget yet for the short-medium term then it tells you that the level of uncertainties is just too high for a lot of investors to accommodate, and so you see the shortfalls in the amount that came in as the 5-year bond issuance”.