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Government to raise $5 billion on capital market in 2021

The Minister for Finance, Ken Ofori-Atta, is seeking parliament’s approval to continue to raise funds from the international capital market to fund the 2021 budget and liability management

The government is targeting to raise about $5 billion from next year on the international capital market, Minister for Finance, Ken Ofori-Atta, has told Parliament.

Delivering the first quarter budget for 2021 in Parliament on Wednesday, Ofori-Atta said the government will start with $3 billion with an option to increase to $5 billion if conditions become favourable on the market.

According to him, $1.5 billion will be used to support the 2021 budget with $3.5 billion going into liability management.

“Mr. Speaker, to support the 2021 budget and liability management, we plan to source funding from the international capital market.

“This will comprise the issuance of sovereign bonds of US$3 billion with the option to increase it to US$5 billion should market conditions prove favourable. Out of the amount to be raised, US$1.5 billion will be used to support the 2021 budget and US$3.5 billion for liability management,” Ofori-Atta informed the MPs.

First quarter projection

Meanwhile, government is requesting to spend an amount of GHS27.4 billion for essential business in the first quarter of the 2021 Financial Year.

“This is for the purpose of meeting expenditure necessary to carry on the services of the Government in respect of the period expiring three months from the beginning of the financial year or on the coming into operation of the Appropriation Act in respect of the 2021 financial year,” he said.

The total amount is to cover government operations such as compensation of employees, ex gratia awards, interest and amortization payments, transfers to statutory funds, critical programmes and goods and services, and Capex allocations of Municipal and District Assembly’s (MDAs).

Fred Dzakpata

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