Three bonds sold by government on Thursday, May 29, 2014 to finance some maturing debts has been heavily oversubscribed.It however came at a high cost as government would be paying investors who participated in the bond an interest of 24.5 percent. effectively, we are borrowing Ghc300m at an astronomically astronomic interest of 24.5%,not to undertake developmental projects,but rather,to pay debts. now,if this isnt a clear case of robbing peter to pay paul,then,somebody please tell me what it is and couldnt we have simply gone to Barclays Bank and simply borrowed this money at a commercial rate of about 6% or less?!!!
Posted on: Fri, 30 May 2014 10:28:02 +0000
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