Details Of $50bn Century Bond In 2019 Budget - Finance Minister

Government's plan to issue a $ 50 billion century bond to fund critical infrastructure projects will be outlined in the 2019 budget statement, Finance Minister Ken Ofori-Atta has said.

According to Mr Ofori-Atta, the budget statement which is expected in parliament on November 15 will give clear information and strategies on how the government intends to raise the fund.

The process to raise the fund will begin after parliamentary approval, he said.

The Minister made the disclosure in an interview after launching the Public Investment Management System in Accra.

“I think the concept will be in there and the fundraising will begin immediately after the budget. We are excited about it because we have gone through the worst of times as a country and certainly we need to increase liquidity in the system,” he noted.

"We hope to issue this bond as a shelf offering with zero interest in the first five years, hoping that it will give time for results from the intended purpose."

He believes the economy has gained some grounds and the $50bn century bond will be able to support the various government programmes.

The century bond is also expected to be in multiple currencies as a way of spreading the risk.

“We are pretty on solid ground, certainly the issue of the currency, the dollar has been stronger globally looking at the UK and others. So really we are holding our on in many respects and that is why we had the Standard and Poor’s upgrade which signals the confidence in what we’re doing and where we're going.”

Rebasing of the economy
Mr Ofori-Atta added that the rebasing of Ghana’s economy will expand it by about 20 per cent and it is also expected to bring down the debt to GDP ratio.

He, however, believes that the launch of the policy document for the public investment management system is critical for the country with the coming in of many infrastructure funds.

The policy is expected to guide public institutions in funding infrastructure projects across the country.

“Having run a fiscal consolidation programme over the past five years, it is important that any effort at improving public investment management and infrastructure delivery must include a structural reform agenda which ensures better domestic resource mobilization,” he said.