Government achieved a 15.4% oversubscription of its Treasury bills sale last Friday (October 7, 2022), but at higher interest rates.

According to the auction results by the Bank of Ghana, the government secured ¢1.35 billion from investors.

Demand for short-term securities continues to surge, despite the increasing cost of repaying the financial instruments by the government.

According to the results of the auction, the government recorded a slight increase in the sale of the T-bills over the target of ¢1.17 billion. 

However, this came with higher interest rates. It means the government will spend more to repay the borrowed funds.

Again, the private sector continues to be crowded out from access to finance. 

Whilst the 91-day T-bills went up by 0.51% to 30.96%, that of the 182-day T-bill also almost hit 32%, from 31.54% the previous week.

In 2022, the government is expected to spend ¢42 billion of tax revenue as interest payments.