ACCRA May 23 Ghana's cabinet has approved a
Eurobond issue of up to $1 billion tentatively scheduled for
July, Finance Minister Seth Terkper said on Thursday.
"Based on anticipated market conditions and financing needs,
a transaction size of up to $1 billion was recommended to, and
approved by, cabinet," Terkper told reporters, adding that
Citigroup and Barclays had been appointed lead
managers on the deal.
He also named Accra-based Ecobank Development Corporation
and Strategic African Securities as co-managers of the bond,
which the government said would be used for capital expenditures
and refinancing public debt to reduce cost of borrowing.
Terkper said the government was considering additional
measures including tax hikes and regular adjustment in utility
prices to boost revenue for the year after provisional data
showed shortfalls in first quarter revenue target.
The government would also review the implementation of a
public sector pay package which has taken a huge toll on the
economy, he said, adding that the current size of the wage bill
which takes up 60 percent of the total national budget was
"We have come to a point where we cannot continue at the
current pace," Terkper said. "It is not only unsustainable but
it is also creating distortions within the public sector wages."