Finance Minister Seth Terkper on Tuesday announced government plans to issue $1.5 billion Eurobond in the second half of the year, some $500 million more than initially planned.

Presenting 2015 Mid-Year Review and Supplementary Estimates to Parliament, Mr Terpker said the move is in line with the Medium Term Debt Strategy to ensure that financing requirements are met promptly at the lowest possible cost consistent with a prudent degree of risk.

It is also to diversify funding sources and lengthen the maturity profile of the debt portfolio.

The Minister said to help achieve the goals, the Eurobond issue would be backed by a World Bank Policy Based Guarantee – another sub-Saharan Africa initiative, first for the nation.

The amendment for the increase is currently under consideration by this august House, he said.

Mr Terkper also announced an increase in the deficit target to 7.3 per cent of gross domestic product (GDP) from 6.5 per cent on account of lower oil revenues.

The revised total petroleum receipts for 2015 is estimated at GH¢ 1.8 billion (1.3 per cent of GDP), compared with the 2015 Budget estimate of GH¢ 4.2 billion (3.1 per cent of GDP).

“The difference of GH¢ 2.2 billion is 58.0 per cent lower than the 2015 Budget target,” the Minister said.

Overall, total revenue and grants for the 2015 fiscal year have been revised downwards to GH¢ 30.5 billion to GH¢ 32.4 billion.

The Minister said growth is now expected at 3.5 per cent, down from a previous forecast of 3.9 per cent on the back of decline in commodity prices.

Mr Terkper said steps taken by the government to stabilise the economy are beginning to yield results with the cedi recovering against the major trading currencies, especially the dollar.

"The bold measures we have taken since 2013 have restored confidence in the economy resulting in the gradual and envisaged improvements in revenue performance and foreign exchange inflows," he said.