Tag: ESLA
-
Gov’t clears $1bn legacy debt owed Bulk Oil Distributors
Government has completed payments of all legacy debts due the Chamber of Bulk Oil Distributors, CBOD, according to the Chamber’s CEO, Senyo Hosi. A statement from the Chamber to Citi Business News said the government made payment to the tune of one billion dollars as at January 13, 2020. According to the bulk oil distributors,…
-
Seth Terkper writes: Reading IMF “between the lines” on holidays
Introduction The 2020 new year holidays have come and gone and, despite assurances of an “exit” from the Institution a few months back, the most significant market and fiscal developments relate to the International Monetary Fund (IMF) post-Budget Statement. IMF Article IV: based on “headline” scores, the view was bullish in some official and unofficial…
-
Legacy debt repayment: Banks to access another tranche by end of August
Banks that are exposed to the legacy debts within the energy sector say they are expecting some disbursements by the end of this month to defray part of the outstanding debt. They are also anticipating a swift clearing of the remaining amount with Parliament’s approval of the increase in the Energy Sector Levy. The NPP…
-
Parliament calls for urgent measures to address mounting energy debt
Parliament has called on the Minister of Finance and the Minister of Energy, Mr John Peter Amewu to as a matter of urgency, activate the cash waterfall scheme and other prudent measures to address the debt accumulation in the energy sector. The lawmakers further called on the Minister of Finance, Mr Ken Ofori Atta…
-
ESLA pays GH¢500m interest to investors
Managers of the ESLA bond, have paid an estimated 228 million cedis as first gross interest payments to investors who bought into the 7 year bond of the sixbillion cedis energy sector bond. The bond, which formed part of the first tranche of the issuance, attracted an interest rate of 19 percent. A statement from…
-
Industry intensifies pressure to get 15% petroleum tax scrapped
Analysts have intensified appeals for government to scrap the Special Petroleum Tax on petroleum products. They argue this will give more meaning to attempts to reduce the plight of consumers following rising global oil prices. The comments follow a recent NPA announcement of a seventy percent reduction in the price recovery and stabilization levy calculated…
-
Finance Ministry dismisses Minority’s claims on energy bond
The Ministry of Finance has reacted to what it describes as unsubstantiated claims by the Minority in Parliament over the energy bond. According to the Ministry, the arguments put forward by the side do not reflect the actual situation. The Minority on Wednesday held a press conference where it criticized the below 6 billion cedis…
-
Is the ESLA considered as a bailout for Banks in Ghana? [Article]
Preamble: As noted in my recent article titled “Poor credit practices leading to high NPLs in Ghana”, I concluded that the primary cause of default for energy related SOE and BDCs debts is due to the banks irresponsible credit decision. In this article, I will like to expand on the above referenced article and demonstrate…
-
Energy bond auction ends today
Government is expected to conclude the auctioning of the energy bond Friday, November 3, 2017; barring any last minute changes. Managers of the bond had to extend the auction for the bond after they failed to raise the 6 billion cedis expected. The 7 year bond made the 2.4 billion cedi mark after auctioning closed…
-
Investor confidence for energy bond positive
Lead managers of the energy bond have described as positive, investor confidence expressed at the road shows conducted ahead of the bond issuance. Government on Monday, October 23, 2017 concluded the two road shows for the energy bond to clear the 2.5billion dollar energy sector debt. The representatives of Fidelity Bank and Standard Chartered Bank;…