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Government to support 2021 budget with $5 billion bonds

The government is seeking to raise $5 billion from the international capital markets to support growth-oriented expenditures in its 2021 budget.

The government intends to raise the amount through Eurobonds, diaspora bonds, sustainable bonds, and syndicated/bridge loans.

Consequently, the government is finalising arrangements with banks that will execute the transactions.

The Bank of America, Citi Bank, Rand Merchant Bank, Standard Chartered Bank and Standard Bank are the financial institutions listed as Lead Managers under the 2021 International Capital Market (ICM) Funding Programme.

“One of the key mandates for the Banks is to advise the Government on various alternative funding structures and options especially for the Eurobond, that would best fit Ghana’s funding requirements and provide the fiscal capacity to further support economic revitalization and recovery at this time,” a Ministry of Finance statement issued on Tuesday, March 9, 2021, said.

It comes ahead of the 2021 budget presentation to parliament on Friday, March 12.

President Akufo-Addo has directed the Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, to present the 2021 Budget and Economic Policy to Parliament, in the absence of Finance Minister-designate Ken Ofori-Atta.

Mr Ofori-Atta is unable to do so as he is seeking treatment for COVID-19 complications in the United States.

The COVID-19 pandemic placed exerted fiscal pressure on the government with a revenue shortfall estimated at GH¢13.5 billion.

A combined effect amounting to GH¢25.3 billion was spent in addressing the pandemic.

With the government targeting a Gross Domestic Product (GDP) of 5% in 2021, the government is committed to raising funds from different sources to support its budget.

 

 

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