The government seeks to spend 750 million dollars of the proposed Eurobonds in filling the 3 billion Ghana cedis (789.4 million dollars) funding gap in the 2016 budget, while 250 million dollars is spent in refinancing maturing domestic and foreign debts.

eurobond
eurobond

Parliament had on Tuesday passed the Appropriations Act, granting government the permission to spend 13.18 billion dollars in the execution of the 2016 annual budget.

Ghana sold its fourth Eurobonds of 1 billion dollars in October at a coupon rate of 10.75 percent with a 15-year maturity period.

“Refinancing is part of government’s debt management strategy which aims at replacing relatively expensive short term domestic debts with long term and relatively less expensive external debts,” Deputy Minister for Finance Cassiel Ato Forson told parliament’s Finance Committee. Enditem

Source: Xinhua

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