The Government of Ghana Index-Linked Bonds (GGILB), recently introduced, will help to a large extent in the establishment of a long-term debt-market in the country. This will be done through the creation of enabling conditions for future corporate and other government bond issues.

Speaking at the launch of the GGILB at the Ghana Stock Exchange in Accra, Mrs Grace Coleman, Deputy Minister of Finance, announced that the bonds were also meant to help the country save about ?190 billion in domestic debt interest payments by the end of the year 2002.

The bonds, which are three-year inflation-indexed, are accompanied by real coupon rates ranging from five to six per cent.

The principal and interest payments will be adjusted in line with changes in the consumer price index (CPI), which will take account of inflation after the GGILBs are issued.

The Deputy Minister explained that individuals would be allowed to buy shares in government companies traded on the Stock Exchange with their acquired government bonds.

Mr Aseidu Mantey, Deputy Governor of the Bank of Ghana, who also spoke at the function, assured investors that they would not lose their investments with the introduction of the GGILBs. He noted that inflation had been an impediment to short term investment and hoped the introduction of the bonds would help the situation.