The government has cleared its debts to the Bulk Distribution Companies. The outstanding US$1.003 billion BDC legacy debts had accrued over the period from 2011 to 2020, according to Senyo Hosi, the Chamber’s CEO.
The payment comprised cash payments of US$444.72 million, Bank of Ghana bonds of US$219.08 million, and ESLA bonds of US$339.28 million. The validation process for the payments began under the Mahama-led administration and was finalized by the current Nana-Addo-led government.
The debts had comprised losses incurred by the BDCs as a result of the differences between the cedi-dollar forex rates set by the National Petroleum Authority for pump prices and the rates at which the rates were supplied by the Bank of Ghana on behalf of the Government, which was a total ‘forex loss under recovery’ of US$ 806.25 million.
It also included interest accrued on delayed payments of forex loss under-recoveries which was a total of US$99.67 million; and interest accrued on the delayed payments of the price under-recoveries which also amounted to a total of US$97.16 million.
Aside from the debts, the BDCs and banks also waived some US$ 432.00 million, an amount due for payment but waived on account of negotiations with the government. Mr. Hosi, in a statement, appreciated the government’s responsiveness to the issue and subsequent efforts which have led to the settlement.