Lagarde-Christine - IMF MD (Photo source
Lagarde-Christine - IMF MD (Photo source

In an exclusive email conversation with Business Finder, the fund recommended a change in the country’s borrowing strategy, to consider changing market conditions when assessing alternative debt instruments.

Lagarde-Christine - IMF MD (Photo source
Lagarde-Christine – IMF MD (Photo source

An IMF spokesperson pointed out that to support government’s aim at a primary surplus for 2016 which is set to bring the debt to a downward trajectory, the fiscal deficit will also need to be financed at the lower cost, taking due account of the risks.

The Fund reminded government that “recently, yields on Ghana’s Eurobonds have increased to above double digits, making this borrowing option very expensive.”

This warning is timely as government prepares to go to another roadshow in April this year to convince investors to subscribe to its fifth Eurobond.

Ghana earned an astronomical 10.75% yield on the fourth Eurobond issued last year for $1 billion, a move that was criticized by analysts as too expensive.

Source: Business Finder


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