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Parliament defers approval of Ghana's 2nd EUROBOND
 
Posted on: 26-Jun-2013         Source: myjoyonline.com
 
 
 
Parliament has deferred approval of the country's second EUROBOND to Thursday June 27, 2013 as government plans to turn to the international capital market next month to raise $1 billion.

Proceeds from the bond issuance would be used to finance infrastructural projects in the country and restructure maturing debts.

The House was expected to give approval to the bond issue after receiving a report from the Finance Committee of Parliament on Tuesday June 25, but errors identified in the report prevented the approval.

Some analysts are worried any delay in approving the BOND might affect government’s chances of getting all the funds from investors at a good interest rate.

But investment analyst, Derrick Mensah told Joy Business though time is of the essence, carrying out the requisite scrutiny is necessary.

“We need to do the due diligence to ensure whatever move that’s being made is a step in the right direction. But they [Parliamentarians] have to also do it with a sense of urgency to save the cedi from further deteriorating” he said.

Meanwhile, Parliament has been debating the revised Ghana Investment Promotion Centre (GIPC) Act. The Act seeks to approve the regulation covering investments in the country.

Joy Business has learnt Parliament might not make any major changes to the revised Act. This should mean that proposals to the GIPC Act by the Trade, Industry and Tourism Committee of Parliament could soon be passed into law.