The government’s failure to achieve its target of GHS6 billion for
Addressing a press conference on Wednesday, 8 November, ranking member of the Finance Committee, Cassiel Ato Forson said: “The poor showing of the bond is a vote of no confidence in the Akufo-Addo and Bawumia-led government by the investor community”.
“The world’s number one reader cannot raise a bond which anybody can do; it is interesting. Ghana’s number one reader cannot even raise a GHS6 billion bond yet he brought something that has put Ghana to shame”.
The former deputy finance minister also accused the government of causing financial loss and also wondered why parliamentary approval was not sought before the issuance of the bonds.
He said that the absence of parliamentary approval turned investors off, explaining that most offshore investors who are big buyers of Ghana’s bond would only participate in papers that are guaranteed by the government.
Mr Forson further indicated that the “inability by government to meet the debt service coverage ratio” is one of the major reasons for the bond failure, adding: “Before raising bonds, government needed to communicate to the investors that the proceeds will be able to service the bond going forward. Unfortunately, the assumption that was provided by the ministry of finance to the investors were clearly short of the truth”.
“This monumental failure is a classic vote of no confidence in the economy and the economic management team led by the Vice-President of the Republic."