Home | Goldstreet Business
Sunday, January 17, 2021
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
Gold Business Logo
No Result
View All Result

Gov’t borrows US$1.25 bn for new spending

July 4, 2018
in Uncategorized
0
Share on FacebookShare on Twitter

Government is engaging in US$1.25 billion in foreign borrowing from commercial lenders this year to finance its projects and programmes. This is adding to the country’s public debt since these monies are not being used for refinancing of already existing debt. The new borrowing consists of US$750 million out of the recently issued US$2.5 billion in Eurobonds and a furtherUS$500 million being borrowed from other commercial lenders.

The debt is exclusive of the US$1,3 billion syndicated loan being taken to finance cocoa purchases from farmers, which is a self-amortizing loan and therefore does not actually add to the public debt.

The new borrowing on commercial terms is within the ceiling agreed between government and the International Monetary Fund with whom it is engaged in a three year Extended Credit Facility programme that will expire at the end of this year. The agreement has a cumulative net foreign borrowing ceiling of US$3.5 billion for the period 2015 to 2018. The major part of the Eurobond issuances done so far within this period has been used for refinancing of existing debt – including US$1.75 billion from the latest issuance – and so did not count as new net borrowing.

RELATED POSTS

GSA maintains fees to bring relief to importers and traders

Make COVID-19 testing free – Ghana Medical Association

Government’s large net foreign borrowing for 2018 has become necessary in the face of major cuts to its capital budgetary expenditure on development projects both last year and this year as it seeks to match expenditures with revenues so as to reign in the fiscal deficit. The new borrowing is thus being used primarily for capital projects, particularly on infrastructure, and the particular projects to receive financing from the new borrowing have been agreed with the IMF itself to prevent diversion of loan financing into non-priority projects.

However, just as government’s critics have warned, part of the new borrowing is going into consumption in the form of financing of some of government’s social interventions, most notably free Senior high School, the school feeding programme and LEAP, which transfers income to some of the poorest households in the country. Critics warn that borrowing for consumption would create difficulties in raising revenues requisite to service and amortize the loans, especially since they are being contracted at market, rather than concessionary interest rates.

However the bulk of the new lending is going into financing of about 40 development projects which will increase Ghana’s social and economic infrastructure.

They include: Takoradi Port expansion; ECG prepaid meter distribution; construction and equipping of 10 polyclinics in the Central Region; Self Help Electrification Project; four district hospitals and accident and emergency centres in Bamboi, Somanya, Tolang, Weta and Buipe; Kumasi market phase 2; the Eastern Corridor road project; the Obetsebi Lamptey Circle drainage and interchange in Accra; rehabilitation of Bekwai Hospital; and sugarcane development and irrigation project.

Other projects to be financed include: Karpower Project phase 2; Takoradi thermal Power Project; renovation of Ghanaian missions abroad; works at Kumasi airport; development of the terminal building and related works at Tamale airport; Eastern University; Damango Yendi water project; construction of Tema to Akosombo railway line; and the Transport sector project and Secondary Education project, both in collaboration with the World Bank.

Also for financing from foreign loans this year are polytechnics, technical and vocational centres; rehabilitation of Kumasi roads; selected infrastructural works in Kumasi’s central business district; Koforidua Regional Hospital; rehabilitation of Mampong, Atibire, Aburi and Kyebi hospital in the Eastern Region; completion of Legon Medical Centre; rehabilitation and expansion of Elmina Fishing port; Essiama Enclave water supply; the Prfsident’s plan for agricultural roads, infrastructure for Zongo communities; and infrastructure for the poverty eradication programme.

Government’s key initiatives – one district one factory, planting for food and jobs and the national ID card initiative – also are getting financing from foreign loans contracted this year along with the support for business incubator.

60

SHARES
facebook Share on Facebook
Twitter Tweet
Follow Follow us
custom Share
custom Share
custom Share
custom Share
custom Share
ShareTweetShare

Related Posts

Government has not increased import duties – GSA

GSA maintains fees to bring relief to importers and traders

January 15, 2021
Make COVID-19 testing free – Ghana Medical Association

Make COVID-19 testing free – Ghana Medical Association

January 15, 2021
Government to borrow ¢2.6bn in first quarter

Government to borrow ¢2.6bn in first quarter

January 15, 2021
Moody’s forecasts 4% growth rate for Ghana in 2021

Moody’s forecasts 4% growth rate for Ghana in 2021

January 14, 2021
54 out of 55 countries have signed AfCFTA agreements – Secretary-General

Young Africans, Women to benefit from AfCFTA

January 14, 2021
Next Post

e-Crime Bureau adjudged cyber security company of the year 2017

Growth to remain stable in 2018 and 2019 – Standard Bank

Archives

<
January 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
▼
>
MonTueWedThuFriSatSun
    123
45678910
11121314151617
18192021222324
25262728293031
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
     12
3456789
10111213141516
17181920212223
242526272829 
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
    123
45678910
11121314151617
18192021222324
25262728   
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       

RECOMMENDED

Government has not increased import duties – GSA

GSA maintains fees to bring relief to importers and traders

January 15, 2021
Make COVID-19 testing free – Ghana Medical Association

Make COVID-19 testing free – Ghana Medical Association

January 15, 2021

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Energy
  • Health
  • Auto
  • International
  • Subscription Form
  • Staff Webmail
  • About Us
  • Contact Us
Call us: +233 24 432 0902 | info@goldstreetbusiness.com

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • World
  • Business
  • Technology
  • Health

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.