Domestic bond to be issued in 2008

Government has announced that it would be venturing into the capital market again after the successful issue of the $750 million bond on the international capital market. The next bond would however be issued in the domestic capital market.

Minister for Finance and Economic Planning Kwadwo Baah-Wiredu told parliament while delivering the 2008 financial statement of the government that the objective is to develop the long term investor segment of the domestic capital market.

The 10-year domestic bond to be issued is expected to widen the yield curve of government debt. Government, according to the finance minister will also rationalise the issuance calendar in order to achieve issue predictability and also encourage secondary trading between issues.

Government will in 2008 also seek to strengthen the regulatory environment of doing business to promote the private sector led growth by focussing on simplifying the current regulatory regime in Ghana, reviewing the functions of the regulatory agencies, scale down on the number of regulatory authorities and establish benchmark for good practices.

According to the Finance minister, government also intends to introduce a Fiscal Responsibility Act which is designed to ensure better discipline and efficiency at all levels of government to achieve set out fiscal targets and fiscal principles for the state.

The Act will also help to provide reports on departures from fiscal targets and fiscal principles to be prepared by the Minister of Finance and in addition provide corrective measures when fiscal targets are missed.

The minister also disclosed government’s plan to improve the financial situation of the country and its people, the introduction of a financial literacy programme in 2008 which will be anchored by an annual financial literacy week.

The objective of the programme, Mr. Baah-Wiredu says, will be to raise awareness of the range of products and services available to consumers and the rights and obligations of consumers and service providers to help Ghanaians understand better the issues of finance and manage their finances better.