Government borrowed GH¢24 billion via T-bills in February 2024 – Report

n February this year, government borrowed an amount of GH¢24 billion via treasury bills.

This is 29.3% higher than its target, a report by myjoyonline indicated.

It further said government exceeded its 2-month target by GH¢12.4 billion.

“Investors submitted total bids worth GH¢24.1 billion (+8.8% month-on-month) while accepted bids were valued at GH¢24.0 billion (+8.9% mon-on-month), sustaining the government’s quest to build buffer for future auction shortfall as indicated in the 2024 budget,” the news portal stated.

In January this year, government borrowed GH¢12.7 billion from T-bills to finance maturing bills.

This was from the 91, 182, and 365-day bills.

The 91-day and the 364-day yields as of December 2023 were cut by 14 basis points and 74 basis points month-on-month to 29.4% and 32.5% respectively while the 182-day yield gained 19 basis points to 31.9%.

Analysts estimate show that the cumulative excess uptake in the first 2 months of 2024 is 23% more than the excess uptake recorded in the same period in 2023.

Meanwhile, government raised an amount of GH¢3.223 billion in the first auction of 2024.

This represented 15.24% more than the targeted amount.

Despite the high rates, the government has witnessed oversubscriptions in the past months except in a few instances where it saw slight undersubscriptions.