The government has indicated, $750 million raised from the international capital markets, would be used to finance the 2018 budget.
According to Finance Minister, Ken Ofori Atta, the government plans to direct the funds to areas such as Irrigation infrastructure, Rehabilitation of Warehouses and Silos, Fisheries and Aquaculture inputs, Education, Road, and Rail infrastructure
This comes on the back of the historic issuance of $2 billion sovereign bonds in the US Thursday. The 10-year bond raised $1 billion at an interest rate of 7.627% while the maiden 30-year bond raised another $1 billion at 8.627%.
These cheaper bonds are expected to help the country pay off the expensive bonds issued by the previous administration and save Ghana money which can be invested in job dense initiatives.
“I think it’s the best 10-year-rates in our history…we also got the highest interest [in the bonds] we have ever got in our history,” Mr Ofori Atta stated on Joy FM’s Super Morning Show, Friday.
The last 5-year bond issued by the erstwhile National Democratic Congress (NDC) administration cost Ghana a coupon rate of 9.25%.