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The Ministry of Finance has discredited allegations by the New Patriotic Party (NPP) Minority Caucus in Parliament that the government has misapplied the $ 1 billion it raised from the European bond market in September, this year. Consequently, the ministry has given a breakdown of what it has used and what is left of the $ 1 billion meant for refinancing short-term expensive domestic debts, counterpart funding and fund capital expenditure (Capex) projects. The minority had at a press conference last Tuesday accused the government of using the fund to reduce its indebtedness to the Bank of Ghana (BoG). According to the NPP Members of Parliament (MPs), instead of using the bond inflows, which translated into approximately GH� 3 billion, for the purpose for which it was issued, the government rather used the money to settle its debts to the central bank. They further alleged that once the Eurobond proceeds had been used to repay the government�s debts at the BoG, the funds would no longer be available for the capital projects for which the funds were secured. Government�s breakdown of the Eurobond fund But a statement signed by a Deputy Minister of Finance, Mr Cassiel Ato Forson, said the total amount utilised so far was US$191.23 million, leaving a total unutilised amount of US$808.77. Giving a further breakdown of the figures, the statement said US$200 million was planned to be used for short-term debt refinancing. However, of the amount, a total of US$64,993,254.06 had been transferred to pay for the maturing three-year government bond totalling GH�200 million on October 15, 2014, leaving a balance of US$135.01 million. Secondly, US$250 million was planned to be used for the Ghana Infrastructure Investment Fund (GIIF) Account. According to the statement, as of October 24, 2014, the total amount had been transferred into the GIIF Account as a seed capital for the scheme which would be commissioned in early 2015. Furthermore, US$250 million was planned to be used to fund capital expenditure projects. �As at today, a total of US$114.95 million has been used to pay for various projects, leaving a balance of US$135.05 million,� it said. For Counterpart Funding, US$288.71 million was budgeted, but the statement said nothing had been utilised so far under the component. According to the NPP Parliamentary Caucus, the Minister of Finance muddied the waters by stating that $800 million of the funds were sitting intact in a bank account in New York. They said that the massive central bank credit extension to the government amounted to a breach of Section 30 (2) of the BoG Act 612 (2002) which stipulated that the central bank could not extend credit to government in excess of 10 per cent of the government�s tax revenue for the year. However, the statement said, �In September, 2014 when government account with the Bank of Ghana was credited with the proceeds from the Eurobond issue, government deposits with the Bank of Ghana increased by the full extent of the amount that was credited to government. �As a result government�s net position with the central bank improved, and this is what reflected in the monetary survey as a reduction in the Bank of Ghana�s net claims on government at the end of September, 2014 from the position as at end-August, 2014.� On September 18, 2014, Ghana issued its third Sovereign Bond worth US$1 billion at coupon rate of 8.125 per cent. After discount and estimated issue expenses, US$988,706,548.00 was credited to government account at the BoG on September 19, 2014. How Eurobond was used would be published The statement said after the full utilisation of the proceeds from the 2014 Eurobond issue, the government would publish the full list of what the proceeds had been used for as it did with the 2013 Eurobond issue. �We wish to reaffirm government�s commitment to ensuring that the proceeds from the 2014 Eurobond issue will be used for its intended purpose as published in the prospectus for the benefit of the people of Ghana.� The government�s intended purposes for the money include funding infrastructural development, including the Kasoa and the Kwame Nkrumah Circle interchanges and the Polo Ground Bypass.