Government to issue $5bn sovereign bonds in 2021; GH$7.7bn to be spent on salaries

The government says it will continue to raise funds from the international capital market to fund the 2021 budget.

This will comprise the issuance of sovereign bonds of $3 billion with the option to increase it to U$5 billion should market conditions prove favourable, Finance Minister, Ken Ofori-Atta disclosed.

He is therefore requesting an approval from parliament for the issuance of the sovereign bonds of US$3 billion with the option to increase it to US$5 billion should market conditions prove favourable.

Out of the amount to be raised, U$1.5 billion will be used to support the 2021 budget and US$3.5 billion for liability management.

Ghana first went into the international capital market in 2007 to raise funds to support the budget. It has since been going to the market to borrow to support the budget and liability management.

Meanwhile, government will spend GHS7.7 billion of the GHS27 billion it is seeking approval from parliament on salaries for the first quarter on next year.

A little over GHS7 billion will also be used to settle interest payments, whilst GHS1.9 billion will go into capital project.

Mr. Ofori-Atta said the Controller and Accountant-General will ensure that all Ministries, Departments and Agencies operate strictly within the levels set in the Expenditure in Advance of Appropriation to be approved by this August House.

Source:Joy Busisness

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