Ghana to Reduce Treasury Bill Borrowing to GH₵200 Billion in 2025
The Ghanaian government is projected to borrow approximately GH₵200 billion from the Treasury bill market in 2025, a decrease from an estimated GH₵220 billion in 2024, according to Databank Research’s 2025 Ghana Market Outlook report.
Key Highlights
- Reduced Weekly Borrowing: Average weekly borrowing is set to drop to GH₵3.9 billion in 2025, down from GH₵4.2 billion in 2024.
- Strategic Shift to Long-Term Instruments: The government plans to transition to long-term securities by the second quarter of 2025, reducing reliance on short-term Treasury bills.
- Improved Funding Access: Enhanced access to international financial markets and alternative funding sources is driving the reduction in short-term borrowing.
Economic Implications
- Yield Management: Lower demand for Treasury bills is expected to ease high yields, aligning with Ghana’s broader economic recovery initiatives.
- Financing Flexibility: The shift toward long-term securities offers the government more sustainable financing options and supports macroeconomic stabilization.
Short-Term Outlook
The transition to long-term funding will likely occur after Q1 2025, as high refinancing needs stemming from 2024 borrowing may sustain short-term funding demand temporarily.
Email us to place your Ads