Home | Goldstreet Business
Monday, August 15, 2022
  • 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

Ghana’s latest Eurobond issuance

March 22, 2019
in Uncategorized
0
Share on FacebookShare on Twitter

Those who felt that the erstwhile Mahama administration was imprudent in making a US$1 billion Eurobond issuance an annual ritual, between 2014 and 2016, must be bewildered by the fact that, that administration’s most ardent critics are now part of the administration, that, since replacing his, have issued US$5 billion in Eurobonds within two years – 2018 and 2019. Just as curious is the fact that members of the immediate past administration, now in opposition, have suddenly become hyper-critical of Eurobond issuances.
All this just goes to show the extent to which Ghana’s political class – from both sides of political divide – will go to score points against their opponents by leveraging on the financial un-enlightenment of large segments of the electorate.

To be sure, most of the Eurobonds issued over the past half a decade have been used to refinance debts already issued rather than to increase the public debt further. Politicians on both sides of the divide have always been fully aware of this but simply cannot resist the temptation to make their opponents look irresponsible.

RELATED POSTS

Labianca Saga: GRA Dissociates itself from Col Damoah’s attack on Special Prosecutor

Where is that ONE Currency For ECOWAS?

Unfortunately, such political posturing has forced restraint on the country’s economic managers even when opportunity beckons. Take Ghana’s current circumstances for instance.

Earlier this week, Ghana’s offer of US$3 billion in Eurobonds was oversubscribed nearly seven times, with US$21 billion put on the table by international investors. Ironically, the same country, under the same government is having to struggle weekly to get enough cedi-denominated financing just to meet its maturing debt repayment obligations.

Add to this the fact that in real terms, the dollar denominated Eurobond financing is cheaper; indeed, Ghana pays interest rates of up to two and a half times what it pays Eurobond investors, to attract investors into cedi denominated debt securities.

This is ostensibly because investors have to be compensated for incurring the exchange rate risk when investing in cedi denominated securities since they have to convert their dollars into cedis in order to invest and convert those cedis back into dollars when exiting. If during the tenure of the investment the cedi depreciates the foreign invest6or could lose rather than gain from the investment.

There are no such worries with Eurobonds since they are denominated in US dollars from start to finish.

Common sense therefore suggests that government should issue more Eurobonds and les cedi denominated bonds since the former are both cheaper and more attractive to investors.

One major reason why this is not happening is simply the negative connotation associated with Eurobond issuances, for political reasons.

In actual fact, since Ghana has to guarantee foreign investors that they can change their cedis into dollars when exiting from their cedi investments, there is no practical advantage of this over Eurobond investments; either way, Ghana must cough up foreign exchange when repayment time comes around.

Like with so many other crucial issues we call on Ghana’s political class to put the country’s best interests – including the need to manage the public debt as efficiently as possible – ahead of political point scoring.

Not only would this put an end to the demonization of Eurobond issuances by politicians in opposition; it would mean lower debt servicing costs and easier access to refinancing.

Surely that would be a good thing.

facebookShare on Facebook
TwitterTweet
ShareTweetShare

Related Posts

Labianca Saga: GRA Dissociates itself from Col Damoah’s attack on Special Prosecutor

Labianca Saga: GRA Dissociates itself from Col Damoah’s attack on Special Prosecutor

August 15, 2022
Where is that ONE Currency For ECOWAS?

Where is that ONE Currency For ECOWAS?

August 15, 2022
Global gold market trends favour Agyapa Royalty

Ghana doubles IMF funding goal to US$3 billion in three years

August 11, 2022
Gold bounces above $1 800 after US Inflation Data

Gold bounces above $1 800 after US Inflation Data

August 11, 2022
President inspects ‘Agenda 111’ project at Kpandai

President inspects ‘Agenda 111’ project at Kpandai

August 11, 2022
Next Post

Global stocks wilt as Fed shift sparks stampede into bonds

Oil holds near 2019 peak as global supplies tighten

Archives

<
August 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 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
1234567
891011121314
15161718192021
22232425262728
293031    
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
 123456
78910111213
14151617181920
21222324252627
28      
       
     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     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
1234567
891011121314
15161718192021
22232425262728
       
       
    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

Labianca Saga: GRA Dissociates itself from Col Damoah’s attack on Special Prosecutor

Labianca Saga: GRA Dissociates itself from Col Damoah’s attack on Special Prosecutor

August 15, 2022
Where is that ONE Currency For ECOWAS?

Where is that ONE Currency For ECOWAS?

August 15, 2022

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.