Government secured GH¢3.32 billion from the sale of treasury bills in its latest auction held on March 10, 2023.

This was an oversubscription of the GH¢2.41 billion it was targeting.

However, interest rates have dropped significantly to 19%.

According to the auction results from the Central Bank, the government secured GH¢1.43 billion from the 91-day bill GH¢924 million from the 182-day bill, and GH¢959 million from the 365-day bill.

Even though the subscriptions surpassed the target, it was lower than the GH¢4.52 billion secured by the government in last week’s auction. Interest rates however reduced to 19.9% for the 91-day bill, 22.8% for the 182-day bill, and 26.8% for the 365-day bill.

The deputy minister of finance, John Kumah, had earlier stated that the coupon rate of treasury bills will see a further decrease in the coming weeks due to the debt restructuring programme.

According to him, the Domestic Debt Exchange programme has accounted for the reduction in the rate of Treasury Bills from 35 to 24 percent.

The Deputy finance minister argued the programme is yielding the results necessary for economic growth and transformation.

He said in Parliament: “Last week, the treasury bill rate in the country was at 35 percent. Today as we speak, the treasury bill rate has been reduced to 24 percent because of the DDEP. We had oversubscription and even at 24 percent, there is an oversubscription of 121 percent.

“We are going to see a further reduction in the coupon rate of T-Bills. What that portends for our country in the future is that inflation will come down, cost of borrowing for the private will also go down and this will restore economic stability and inclusive growth of our economy.”

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SSD/FNOQ