Government secured a little above ¢1.52 billion from the weekly sale of Treasury bills, about 24% oversubscription, auction results by the Bank of Ghana indicates.
At the same time, the interest cost went down marginally, a move that further reduces domestic interest payment by government.
The recent improved T-Bills sale could be attributed to various factors, particularly the reduction in the Monetary Policy Rate of the Bank of Ghana.
However, the banks that are largely the dominant players in the short term instruments have adopted cautious approach by investing more in risk free instruments then lending to the private sector.
This is because covid-19 has not totally left the shores of the country and for that matter the global economy has also not been fully insulated from the pandemic.
From the March 2021 Banking Sector Development Report, credit to the private sector was still low and was expected to remain same until perhaps after the third quarter of the year.
According to the auctioning results, government secured ¢1.525 billion from the sale of the short term instruments including the one-year bill but accepted ¢1.296 billion.
Interest cost also went down marginally by 0.01%.
The 91-day T-Bill and the 364-day T-Bill were the most patronized/
For now, the latest development speaks volume about the economy heading towards the right direction.
But Joy Business will closely monitor proceedings to find out how domestic borrowing vis-à-vis interest costs is impacting on the economy.
| Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) | Interest rate |
| 91 Day Bill | 739.60 million | 576.99 million | 12.62% |
| 182 Day Bill | 184.42 million | 184.42 million | 13.37% |
| 364 Day Bill | 601.15 million | 535.52 million | 16.33% |
| Total | 1.525 billion | 1.296 billion | |
| Target | 1.216 billion |
Source: Myjoyonline
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