Bank of Ghana admits monetising government debt
West African central bank tries to take funding pressure off government as investors flee
The Bank of Ghana (BoG) confirmed it financed part of the government's budget deficit of 2.1% in the first quarter through "direct" purchases of sovereign bonds.
The practice was flagged up in a Fitch report, published earlier this week, which was described today as "unfair" by a senior BoG official. The ratings agency, which claimed the BoG had "provided funding equivalent to 10% of government revenue – twice the [bank's] full-year limit" said it was an "illustration of the financing challenges
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