“Despite offering bondholders of Govt’s 3 year maturing bonds at 25% coupon to rollover last Friday, only bond holders of Ghc 470 million out of a total of Ghc2 billion agreed to rollover.
This means the cash broke Govt must find about Ghc1.53 billion to redeem the remaining bonds.
The situation is getting worse and making the 2% increase in BOG policy rate hike inconsequential as investors struggle to sell off their holdings in Govt bonds to exit the country to avoid default and loss of value of their money from record inflation and cedi depreciation.
In the past couple of months, the domestic capital market has been awashed with scores of offshore investors putting up their holdings of Govt bonds up for sale without bids or buyers.
The arrogance in the face of a catastrophic lack of liquidity in the market, occasioned by mounting accumulation of arrears by Govt is outrageous.
Govt struggled without success to raise just Ghc875 million of 91 and 182 day treasury bills last Friday after days of loud announcements and marketing when they could raise $2.25 billion in the dark with a JM terrible economy in April 2017.
The worsening fiscal situation of Govt is making things precarious. Govt living now from hand to mouth and almost unable to meet badly needed essentials of the country.
Yet, the focus is on create, loot and share including forests.
Dr Bawumia is obviously in comma needing an Owoo surname for a looting early pilitical retirement with credibility in tatters.
God come early and safe our souls from these Sakawa Kinpins.
Source mypublisher24.com