The Minister of Finance, Dr. Cassiel Ato Forson, has stated that the government is intentionally discouraging banks from excessive reliance on government securities to encourage increased lending to the private sector.
Speaking during an engagement on X spaces with the Ghanaian youth on Sunday, Dr. Forson explained that rejecting excess bids from treasury bill sales is a strategic move to push banks toward supporting businesses.
“Banks will have to lend to the private sector if we keep rejecting the bids,” he said, reaffirming the government’s commitment to maintaining fiscal stability while fostering private sector growth.
He said banks will have no choice than to lend to the private sector because government will continue to reject treasury bills.
The latest treasury bill auction on March 7, 2025, saw a decline in interest rates, with the 91-day bill dropping from 20.79% to 17.71%, the 182-day bill falling to 18.96%, and the 364-day bill declining from 22.69% to 19.98%.
This marks the first time in nearly two years that rates have dipped below 20%.
Despite the drop in rates, demand for short-term government securities remained high. The government received bids totaling GH¢10.30 billion but accepted only GH¢6.221 billion, rejecting GH¢4.08 billion in bids.
Auction results released by the Bank of Ghana showed that the 91-day bill saw the highest demand, attracting GH¢6.00 billion in bids.
The 182-day bill received GH¢2.894 billion in bids, with only GH¢842.61 million accepted, also, the 364-day bill recorded GH¢1.40 billion in bids, of which GH¢947 million was accepted.
Dr Forson said this rejections are strategically designed to make more liquidity into the private sector, ensuring businesses have greater access to credit for expansion and investment for economic growth.
