Government records 36% shortfall in Treasury bills sale

Government recorded a 36% shortfall in Treasury bills sale, according to the latest auctioning by the Bank of Ghana.

Government was seeking to raise ¢1.96 billion from the sale of the short term instruments, but got ¢1.248 billion.

This came at a higher interest rates.

For the 91-day Treasury bills, government secured ¢1.031 billion at a rate of 18.226%.

¢128.47 million and ¢88.1 million were mobilsed from the 182-day and 364-day bills at rates higher than the 3-months bill.

They actually came at a higher cost to the government as interest rates on the short term financial instruments have been going up every week to make up for the liquidity shortfall and the under-subscription of Treasury bills sale so far this year.

In the just ended T-bills auctioning, the 91-day and 182-day Treasury bills went up by 0.42% respectively to 18.22% and 19.26% respectively.

The one-year bill also increased by 1.07% percent to 21.72% to entice investors.

Since the beginning of this year, interest rates have been rising consistently to compensate the rising inflation and consequently mop excess liquidity in circulation.