Reports reaching BUSINESS & FINANCIAL TIMES indicate that government will as from next month begin to have some breather with respect to its domestic debt interest repayment.

This would be made possible following the development of four new debt instruments by the Bank of Ghana (BoG) to extend the maturity profile of government debt.

BoG sources say the move is part of efforts by the central bank to deepen the financial market and establish a benchmark yield.

The instrument floating rate note and bond, and fix rate note and bond with maturity dates ranging from 2 to 3 years will be issued in addition to the existing securities on the market; although will replace government of Ghana Index linked Bonds which will be phased out as they mature, starting from September.

Again, the 2 year floating rate note and the 3-year floating rate bond will be linked to the 91-day and 182 day Treasury Bill respectively with interest to be paid quarterly in the case of the former and half yearly for the latter.

Analysts have commended the move considering the fact that government had to dole out about ?301.4bn of the HIPC funds to bail out government?s domestic debt which has been described as an albatross.