Government settles Bulk Oil Distribution legacy debt
The Chamber of Bulk Oil Distributors has indicated that government has settled all of its BDC legacy debts owed them.
This according to the chamber was finalized on January 13, 2020.
The debts were accrued over the period from July 2011 to June 2015 with interest capped in March 2018.
A statement issued by CEO of the chamber, Senyo Hosi said, “the payments were executed in the form of ESLA Bonds to Legacy Bonds Limited, an SPV jointly owned by the Ghana Association of Bankers and the CBOD for redistribution to beneficiary banks and petroleum service providers”.
The BDC Legacy Debt
The BDC legacy debt comprised Forex Loss Under-Recovery (FLUR) which is the loss incurred by BDCs as a result of the differentials between the GHS/USD forex rates set by the National Petroleum Authority (NPA) for pump prices and the rates at which FX rates were supplied by the Bank of Ghana on behalf of government. A total of $806.25mn was incurred by government from July 2011 to June 2015.
The statement added that, the Forex Loss Under-Recovery Interest (FLURI) which is the interest accrued on the delayed payments of forex loss under-recoveries. A total of $99.67mn was accrued by Government with a tenor cap set on March 31, 2018.