Government interest cost on short term domestic borrowings have fallen once again but marginally.
This will see the government recording some savings in interest payments though it could not meet its target of raising enough money on the domestic market.
According to the auctioning, interest cost on the 91-day and 182-day T-Bills fell slightly.
That is a welcoming news for the government because of the savings to be used to finance some important projects.
Per the results by the Bank of Ghana, government accepted all the bids worth GH¢1.17 billion.
However, the investors were more interested in the short-term end of the market, buying as much as GH¢850 million of the 3 months T-bill.
But the concern is government appetite for borrowing which could be crowding out businesses and household consumers from access to loans.
Meanwhile, the government weekly T-bills target fell short by 23% as it could not mobilize or exceed the target of GH¢1.54 billion.
Presently, government debt on the domestic market has outstripped the foreign debt.
|Securities||Bids Tendered (GH¢)||Bids Accepted (GH¢)||Interest rate|
|91 Day Bill||850.66 million||850.6 million||12.80%|
|182 Day Bill||153.66 million||153.66 million||13.60%|
|364 Day Bill||166.56 million||166.56 million||16.44%|
|Total||1.170 billion||1.170 billion|