Ghana will enter the global capital market next year to issue a 1-billion-Ghana-cedi (220.7 million U.S. dollars) eurobond, Ghana’s finance minister Kenneth Ofori-Atta said Wednesday.

This amount would be one source of the Net Foreign Financing (NFF) for the expected 10.9-billion-cedi budget deficit in 2018.

Ofori-Atta told parliament that the 2018 budget will result in an overall budget deficit of 10.9 billion cedis, equivalent to 4.5 percent of Ghana’s GDP.

“Financing of the fiscal deficit will be from both domestic and foreign sources. NFF will amount to about 3 billion cedis including a eurobond of up to 1 billion cedis, equivalent to 1.2 percent of GDP,” the minister said.

Moving into 2018, the minister reiterated that the fiscal program will be firmly anchored on the ongoing fiscal consolidation as the prime focus is to ensure the fiscal deficit, which remains the principal fiscal anchor, is programed to decline to 4.5 percent of GDP from the 2017 end-year estimate of 6.3 percent

The government, according to the minister, expects the primary balance to be grown to a larger surplus of about 1.6 percent of GDP from the projected 2017 outturn of 0.2 percent in the resolve to “break the back” of a growing public debt from previous years. Enditem

Source: Xinhua/NewsGhana.com.gh

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