{{Ghana Government is set to receive the euro bond cash of one billion dollars on August 7 2013.}}<\/p>\n
It follows a successful bond sale which was over subscribed.<\/p>\n
\u201cThe cash comes in nine days from the deal. The deal was done on the 25 [July, 2013] and per the deal which is Trade day plus nine working days, it then falls on 7 August, Deputy Finance Minister Kweku Ricketts Hagan said on Multi-TV and Joy FM\u2019s news analysis programme Newsfile on Saturday.<\/p>\n
With a ten year, grace period, the bond will mature on August 7, 2023, he added.<\/p>\n
With recent comments about a broke economy, Ricketts said the over subscription of the bond is a testament of the investor confidence in Ghana\u2019s economy.<\/p>\n
Out of the 1 billion dollars raised, 300 million dollars is expected to be used for the refinancing of expensive domestic debt.<\/p>\n
250 million will also be used to retire part of the 750 million dollars euro bond which was floated in 2007.<\/p>\n
Ricketts Hagan stated that 300 million dollars will also be invested in capital projects- projects which are self financing.<\/p>\n
Whilst conceding that the economy had challenges with deficits and an 8 billion shortfall in budget, he is convinced the initiatives to which the 1 billion dollars euro bond will be used for will bring the deficit down and bridge the gap in the budget.<\/p>\n
But Dr Mark Asibey, Member of Parliament for New Juabeng said the timing of the floatation of the bond is wrong.<\/p>\n
He said at a time when government’s budget deficit is skyrocketing, with an increasing unsustainable debt portfolio it was always evident that Ghana will pay a higher interest on the bond<\/p>\n
He said the over subscription of the Eurobond does not necessarily indicate confidence in the country\u2019s economy.<\/p>\n
Asibey indicated that the true test of the confidence in the company is the interest slapped on the bond.<\/p>\n
According to him, Nigeria floated the same 1 billion dollar bond but paid 6.5 per cent interest when Ghana is paying 7.8 per cent on the same amount of bond floated.<\/p>\n
He said government should look within, improve upon its address system and widen the tax net, and cut down on frivolous spending instead of floating bonds.<\/p>\n
Having already gone in for the bond, Asibey admonished the government to put the cash into good use.<\/p>\n
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