Government says it is relying on bond flows as an important source of non-concessionary external finance for its budget funding.

Seth Terkper, Minister of Finance, who disclosed this at a conference in Accra, said there was rapid improvement in bond flows in 2011 and 2012, stressing that more is expected in 2013.

“As the country consolidates its middle-income status, it is prudent to finance the capital component of the budget with long term bonds.

“Ghana issued her first Eurobonds in Sub-Saharan Africa outside South Africa in 2007 and we have already sold a further $750m in 2013.

For this reason, he called for the development of local bond markets to bridge the prevailing long term financial gaps in view of the lessons learnt from peer groups.

Mr. Terpker said government will continue to take stock of the various regulations governing both current and capital account transactions, identify the structural constraints militating against full liberalization and fashion out a very appropriate timeframe for full liberalization, especially the capital account since current account transactions are fully liberalized

These, he said, will help ensure that all remnants of foreign exchange controls in Ghana’s books are eliminated.

In view of this, he said Ghana will continue to be active at the Economic of West African States (ECOWAS) level as the sub-region pursues full capital account liberalization and deepens financial integration in West Africa.

Terpker said this will help to address in a systematic manner the shortcomings of a fragmented and under-developed financial system.

“We also take note that financial liberalization enables a higher degree of financial integration with the global economy through higher volumes of capital inflows and outflows, and this also enables investors to achieve higher risk-adjustment rates of return.

“In this area, Ghana has taken advantage of the liberal international financial system that makes it easier to raise capital in offshore markets to fund domestic consumption and investment.

Additionally, he stated: “We are weary of the systemic risks and vulnerabilities that may arise from the explosion of private capital flows attributable to the inadvertent opening up of opportunities to criminals and increased across borders.

He added that government will continue to tackle money laundering and financial terrorism by adopting rigorous regulations, as well as protocols to harmonize these regulations at the regional level, fight the menace and further equip the local law enforcement institutions.