[ 2016-09-17 ]

BDCs chamber calls for calm over debt payment uncertainty
The Chief Executive Officer of the Chamber for
Bulk Oil Distribution Companies Senyo Horsi has
rejected revelations that government may not abide
by the agreed payment plan to clear debts owed
banks by Bulk Oil Distribution Companies.

Government is currently indebted to about 17 Bulk
Distribution Companies in excess of 500 million
dollars.

In government’s bid to clear debts owed BDC’s,
Citi Business News understands a payment plan was
agreed by the BDCSs, the Ghana Association of
Bankers and the Finance Ministry in which payment
of the debt will be made through a Special Purpose
Vehicle (SPV) to be known as the legacy bond
limited and shared fairly among the debt holding
banks.

However new documents cited by Citi Business News
reveal that the agreement may be ditched by
government authorities.

Speaking to Citi Business News Senyo Horsi said he
is confident government will go by the contract
agreed by all parties.

“For me am confident the Ministry of finance
would want to execute and respect the structure
laid down and has agreed to for the debt to be
paid within the period set. I have very limited
reason to want to doubt their commitment to the
structures and so I would encourage industry not
to be afraid. I think this will be properly
resolved.”

Though Senyo Horsi stated that he will be quite
surprised if government decides not to to abide by
the agreement reached with all parties he insisted
that government was committed to ensure that the
parties received what was due them.

‘I think that would bother on the ministry and
its commitment that it made to the banking
industry and us the BDC’s as well. But I don’t
see that happening. You know when debts like this
are being paid you hear all kinds of rumours but I
trust the minister and his deputies and their
work”, He stated.

Meanwhile documents sighted by Citi Business News
reveal that the parties involved have begun
raising concerns following moves by the Finance
Ministry to rather pay the BDCs through their own
private accounts and ditch the agreed plan.

Letters sighted by Citi Business News to
authorities cautioned that any move by government
not to go by the agreement will have dire
consequences on the transparency and equitable
allocation of funds to the banks and also derail
the restructuring objectives and the significant
efforts made so far by all parties involved.

Citi Business News has learnt the Finance Ministry
is expected to disburse 400 million cedis this
month [September] to clear a large chunk of the
debt, but sources familiar with the development
say the cash may not go through the SPV as agreed
by stakeholders.

According to sources within the Ministry of
Finance, Hon. Cassiel Ato Forson, the deputy
minister in charge of the ministry has been given
the charge to ensure the agreed process between
the parties and government is carried through.

Source - citibsinessnews.com

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