His comments come after government through the Finance Ministry announced a successful US$3 billion zero-coupon bond issuance on the international capital market. Addressing participants during the 4th edition of Media General’s Economic Dialogue series, Prof Quartey indicated that Ghana borrowing from the international capital market would come back to “bite” the country in the long run through high interest rates. The Economist advised the government to further implement stringent measures to boost its revenue mobilizations efforts as opposed to aggressive borrowing. What is a zero-coupon bond and Ghana’s roleA zero-coupon bond is a bond that does not make periodic interest payments during the tenure of the bond, but is sold at a discount to its value at maturity. Ghana earlier contracted the Bank of America Corp., Citigroup Inc., Standard Chartered Plc, Standard Bank Group Ltd. and Rand Merchant Bank Ltd. as lead arrangers to commence investor meetings for the sale of the bond on the capital market.

Source: GhanaWeb April 03, 2021 08:03 UTC