Government’s struggles in raising adequate finance on the domestic market continues as its weekly treasury bills auction recorded an undersubscription for the fourth consecutive week.

Government in the month of July following its inability to meet weekly targets for three consecutive weeks, had a 13% shortfall of its GH¢18.075 bn, as it raised only GH¢15.76 bn, creating a financing gap of GH¢2.298 billion. But its woes continued in the first auction of August (Tender 1914) as it raised only GH¢ 3.804 bn (87%) of the GH¢ 4.363 bn target it had set.

The cost of borrowing despite the persistent undersubscription has inched upward marginally with average rates for the 91 and 182-day bills, rising from 24.79% and 26.74% in tender 1913 to 24.82% and
26.76% respectively in the tender 1914. Rates for the 364 day bills have remained constant at 27.86%

Government for the next auction tender 1915 sees to raise GH¢ 4.363 bn.