Sovereign Bond Brouhaha: Parliament okays One Billion Dollar Eurobond

Sovereign Bond Brouhaha: Parliament okays One Billion Dollar Eurobond

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The Report of the Finance Committee on the request for approval of 2016 Sovereign Bond of the sum of One Billion Dollar ($1 billion), has been approved by Parliament, after the initial brouhaha on the floor of the House.

The House endorsed the request after the Speaker of Parliament, Edward Doe Adjaho had posed the voice vote question of which the Majority won.

The Eurobond is one of the initiatives of government to provide cheaper and long-term resources for financing the 2016 budget. The proposed utilisation structure of the Bond is that $750 Million Dollars will be used to support the 2016 budget, while the remaining $250 Million Dollars will go into refinancing of domestic and external debts.

The Bond is expected to mature in ten years.

Prior to the approval of the Bond, Members of Parliament (MPs) on the Minority Side were not in support of the motion, stating poor economic management by government.

The Minister for Finance, Seth Tekper, earlier, moved the motion to seek Parliamentary approval to borrow from the International Market, which forms part of government’s fiscal and debt management strategies aimed at achieving financial consolidation.