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December 3, 2014 | Business & Finance

Gov't To Publish Eurobond Proceeds

Daily Guide
Gov't To Publish Eurobond Proceeds

Seth Terkper, Finance Minister
Government has given assurance that it will soon publish how it used proceeds from the $1 billion Eurobond it floated this year.

The decision to publish details of how the proceeds were used comes after Dr. Mahamudu Bawumia, running mate to Nana Akufo-Addo for the 2016 elections, challenged government to lay everything bare before the general public.

According to Dr Bawumia, Government used the $1 billion Eurobond it raised for capital investment to reduce debts incurred at the Central Bank.

He highlighted that in the prospectus that sought to convince investors, Seth Terkper, Minister of Finance, indicated that a substantial portion of the amount borrowed would be used for infrastructural development and critical projects.

The former BoG Governor enquired: 'What project did the minister have in mind? The minister should list and provide a detailed plan of what projects he has in mind.'

'Was all the $1 billion spent in the last couple of months or would most be spent in 2015 and on what?

'It is a simple question that demands a simple answer. Show us the projects and the amount of financing from the September Sovereign bond proceeds.'

Government borrowed about $1 billion on the international capital markets in 2013 and another $1 billion in September 2014, a little over two months ago.

However, Mr Terkper, reacting to the issue, said all the questions would be answered, adding that more of the funds were used to pay off maturing bonds.

Cassiel Ato Forson, speaking to journalists in Accra recently, argued that money from the Eurobond sale was being used sensibly.

'We are going to use $250 million for capital expenditure, take another $300 million for counterpart and matching funds and also use $200 million for maturing short time debts.'

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