Oversubscribed bond is synonymous to our debt has increased, why should we celebrate that?

The Executive Director for Media Foundation for West Africa, Sulemana Braimah has quiz why the country should celebrate over subscription of bonds issued by the government when in actual fact the over subscription only mean increase in the country’s debt stock.

According to him, he had always been stunned by the sense of pride with which persons in government and their beneficiaries announced the over subscription anytime government bonds were issued adding “as if it’s something to be celebrated”.

Mr Brimah made the comment in a tweet on Tuesday, March 30, 2021 sighted by GhanaPlus.com.

“I am always amazed at how folks in Gov’t and their beneficiaries often say proudly that “The Bond is Oversubscribed” as if it’s something to be celebrated. The synonym is “Our debt has increased” and why should we be celebrating that?”, his tweet reads.

I am always amazed at how folks in Gov't and their beneficiaries often say proudly that "The Bond is Oversubscribed" as if it's something to be celebrated. The synonym is "Our debt has increased" and why should we be celebrating that?

— Sulemana Braimah (@sulemana) March 30, 2021

Ghana successfully issues US$billion Eurobond

His comment comes amidst report that the government of Ghana has made a successful debut into the International Debt Capital Markets securing $3 billion from an oversubscribed bond book value of $6 billion.

The news makes Ghana the first country from the Sub Saharan African to issue a Eurobond in USD since the beginning of the Covid-19 pandemic.

The proceeds from the bond, graphiconline indicate will be used to support the budget deficit by funding growth-oriented expenditures; and conduct liability management on both external and domestic bonds.

Source: GhanaPlus.com