A new controversy has erupted in Ghana’s financial sector as the government’s plan to raise GH¢6.228 billion through treasury bills faces legal opposition. Private lawyer Jonathan Amable has filed a Supreme Court application challenging the constitutionality of T-bill issuance without parliamentary approval.
Recent Performance
- Last auction (Nov 8): Raised GH¢5.824 billion
- Exceeded target by GH¢201 million
- Strong demand for 91-day bills (GH¢5.10 billion in bids)
Current Interest Rates
- 91-day bills: 26.8%
- 182-day bills: 27.6%
- 364-day bills: 29.1%
Legal Challenge Details
The lawsuit argues that:
- T-bill issuance requires prior parliamentary approval
- Current practice violates constitutional provisions
- Continued issuance could harm the economy
Market Impact
Despite legal uncertainties, the government’s T-bill program has shown strong performance, marking five straight weeks of exceeding targets. The outcome of this legal challenge could significantly impact Ghana’s domestic borrowing strategy.
The case names the Attorney General as defendant, with potential implications for future government borrowing mechanisms and financial market operations.
