A commercial court in Accra is expected to hear a case involving CAL Bank and the University of Ghana, on 13th December 2016, over the latter’s failure to pay for a 43 million cedis loan facility it contracted in 2007.
The University is also reported as breaching a payment plan agreed on with by CAL Bank for the loan agreement.
According to CAL Bank, the decision has become necessary as all efforts to get the University to pay the debts have been unsuccessful.
“I was informed by the University of Ghana Enterprise Limited (UGEL) that government said it was going to take up the facility but it still hasn’t and so after many deliberations we just decided that we will pursue the matter in court,” Head of Corporate Financing at CAL Bank, Justina Brookman –Amissah told Citi Business News during the banks 2nd facts behind the figures session for 2016.
The University of Ghana in 2007 approached CAL Bank for a loan facility for the construction of about 7000 bed capacity hostel facilities.
The eventual credit was granted by six syndicated banks; with CAL Bank being the lead facilitator.
CAL Bank granted 43 million cedis [50 million dollars] at the time.
The Head of Corporate Financing at CAL Bank, Justina Brookman –Amissah also tells Citi Business News the bank is confident the repayment of the loan should help reduce its huge NPL portfolio.
The University of Ghana has since constructed four new hostels; Hilla Limann hall, Elizabeth Frances Sey Hall, Alex Adum Kwapong as well as Jean Nelson Aka Hall.
Others included; Akuafo Hall Annexes C and D as well as Mensah Sarbah Hall Annexes C and D.
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By: Pius Amihere Eduku/citibusinessnews.com/Ghana
