Are Ghana’s Eurobond Development Funds Going To Debt Repayment?

Are Ghana’s Eurobond Development Funds Going To Debt Repayment?

From Ghana Web

Evidence from the Ministry of Finance has shown that government used the US$1billion proceeds from the Eurobond issued last year to pay down its indebtedness to the Bank of Ghana.

An analysis of the Ministry of Finance’s own Fiscal Accounts by the Institute of Fiscal Studies (IFS) — an economic policy think-tank — shows that loans secured domestically from the central bank to finance the budget deficit have been retired partly with proceeds from the Eurobond.

This contradicts the Finance Ministry’s own explanation that the Eurobond proceeds have been utilised for some development projects, while the remaining amount has been lodged in some designated government accounts with Bank of Ghana and is still part of government deposits at the central bank — especially when members of the country’s biggest opposition in parliament, led by Dr. Anthony Osei Akoto, have accused government of using the Eurobond proceeds to defray part of its debts owed the Bank of Ghana; an accusation the Ministry of Finance played down.

The Eurobond, due in January 2026, was sold at a coupon rate of 8.125 percent to raise capital from the international capital market to finance a number of infrastructure projects, refinance short-term expensive government domestic debt and counterpart funding requirements.

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