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Press Release

GHANA PRICES FIFTH EUROBOND

Ghana has priced and will issue its fifth Eurobond of US$750 million at a 9.25% yield. The bond was oversubscribed, with orders exceeding US$4 billion compared to a target issuance size of US$ 750 million. This represents an oversubscription of more than five times indicating the high appetite for Ghana’s credit.
 
The bond is a back-end amortizing maturity with a weighted average tenor of 5 years. The principal will be expected to be repaid in three installments of US$250 million in September 2020, September 2021 and September 2022. Like the four previous issues, this year’s bond attracted investors from the United Kingdom, Europe, the United States, Middle East and Asia. 

 

STATEMENT BY THE HON. MINISTER FOR FINANCE - NEW EUROBOND ISSUE AND TENDER OFFER ANNOUNCEMENT

Thursday 8th September, 2016  Following from our prior roadshow in August 2016, when we indicated that we would continue to monitor markets with a view to a potential new Eurobond issue and our subsequent completion in early August 2016 of a ~US$100 million tender offer in respect of Ghana’s Eurobonds due 2017, we have today announced a prospective new Eurobond issue and any and all tender offer in respect of the outstanding Eurobonds due 2017.

 

Presentation on the Energy Sector Legacy Debts

Energy sector utilities are facing financial challenges which are affecting their viability necessitating a restructuring and priority repayments of their debts via introduction of special energy levies, automatic tariff adjustments and elimination of subsidies.

These legacy energy utilities debt in arrears are not MOF direct or guaranteed debt but posed some level systemic risk to the banking sector.

Presidential Committee on Conditions of Service for Staff of the Judicial Service hands over report to the Presidency

Following the setting up of a Presidential Committee by the Chief of Staff, Office of the President, to review proposals on the Conditions of Service for staff of the Judicial Service who are members of the Judicial Service Staff Association of Ghana (JUSAG), the Committee has completed its assignment and submitted a Report to the Chief of Staff for further action.
 
The Committee wishes to assure members of JUSAG that the Chief of Staff has assured the Committee that appropriate actions are being taken on the recommendations contained in the Report.
 

Clarification on taxation of casual labour

 
The attention of the Ministry of Finance has been drawn to recent discussions in the public domain on taxation of casual or temporary workers. 
2.       The Ministry wishes to clarify that under the repealed tax Act (2000), Act 592 wages of casual and temporary workers (especially those in oil and Gas, Mining and other companies) were taxed at the marginal rate of 15% or 7.5%. These are now replaced with a lower rate of 5%.
3.       For the avoidance of doubt, the 5% in the Regulation L.I 2244 is therefore a reduction in rate and not a new tax on casual and temporary employees. We hope this clarification settles the anxiety that some sections of the public have expressed. 

Parliament Passes Bank of Ghana Amendment Bill

Wednesday 3rd August, 2016. On 2nd August, 2016, the Parliament of Ghana passed the Bank of Ghana Amendment Bill. The objective of the amendment is to significantly strengthen the Central Bank’s functional autonomy, governance and ability to respond to banking sector crises.

Update on Government’s Debt Management Strategy

Thursday 4th August, 2016. As part of Government’s ongoing debt management strategy, the Ministry of Finance continues to take prudent actions to manage the country’s debt stock. 

2.         Consequently, the Hon. Minister led a delegation made up of officials from the Ministry of Finance, the Bank of Ghana and Advisors to meet with institutional investors in the United Kingdom and the United States from 1 - 3 August, 2016 to raise funds primarily to refinance the balance of the 2017 Sovereign Bonds and other outstanding debts.

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