Ghana’s dollar bonds saw a slight recovery by about 1 point, after dropping over 4% ahead of its budget decision. Ghana in its budget, said that it sees deficit narrowing to 7.4% of GDP in 2022 from an expected 12.1% in 2021 (and 9.4% excluding legacy costs) and 11.7% in 2020. It said that its deficit through September 2021 stood at 7.7% of GDP. Ghana said it will take a break from selling Eurobonds and instead use other methods of borrowing to finance next year’s budget. Total revenue and grants are forecast to rise 43% next year to GHS 100.5bn ($16.4bn), while expenditure is estimated at GHS 137.5bn ($22.5bn), a 23% increase. Ghana, which intends to raise as much as $750mn from international sources in 2022 will use syndicated loans and borrowing from bilateral sources so that it can to avoid high costs of financing in international bond markets, as per Adu Boahen, Minister of State in the Ministry of Finance
Ghana’s 8.95% 2051s were up 1.1 points to 80.71, yielding 11.2%.
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