Ghana to hold non-deal road show

Mr. Terkper

Mr. Terkper

The Ministry of Finance has denied media reports that the Ministry is embarking on a road show in preparation for another Eurobond.

A statement issued by the Ministry in Accra yesterday said “We wish to confirm that Ghana is on a road show, but this is a non-deal road show, which is part of our routine investor relations activities designed to share information on financial and economic developments with investors. This means that there is no intent to issue any Eurobond on this particular mission.”

“We wish to reiterate the need for circumspection in the information put out in the public domain,” the statement said.

Mr. Seth Terkper, Minister of Finance told Reuters in Accra that the government plans to use the meetings to showcase the turnaround of the economy and its medium-term potential.

Ghana, which exports cocoa, gold and oil, is currently under a three-year deal with the International Monetary Fund (IMF) to repair the economy, dogged by a high budget deficit, public debt and inflation consistently above government targets.

The central bank’s governor, Henry Kofi Wampah, recently resigned after struggling to manage the economy, once considered a star in the region.

Mr. Terkper said he expected more favourable market conditions this year based on improvements in the Ghanaian economy, especially the potentials of the energy sector.

The country issued a 15-year $1 billion Eurobond in October with a yield of 10.75 per cent after having first targeted a $1.5 billion bond at 9.5 per cent. It was the fourth sale since its 2007 debut.

Parliament in December approved the government’s plans to issue a fifth Eurobond of up to $1 billion to refinance debt and support its 2016 budget.

The 275-member House endorsed the plan by a majority decision, although the opposition had attempted to block the proposal, arguing that market conditions were unsuitable.

Mr. Terkper said he would consider other options of financing including commercial loans but did not give details.

The economy has become a critical political issue ahead of elections in November. Some have feared that the government’s tight fiscal control could slip amid spending for the polls but Mr. Terkper insisted the government was committed to the programme.

“The only challenge is that markets are still volatile – we are watching the external factors, especially crude oil prices,” he said, adding that the government was monitoring keenly and would react appropriately.

He said the government is poised to sustain efforts to attract private investments into the power generation and particularly the oil and gas sector.

“We have an opportunity with petrochemicals and we have to take advantage of it,” he said.

Ghana is expected to deliver the first oil from its new Tweneboah-Enyenra-Ntomme field by August, according to lead operator Tullow Oil.

Oil from the Offshore Cape Three Point project is also expected to start production next year.

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