The Ghanaian government has paid its $1billion legacy debt owed Bulk Oil Distributors

This was contained in a statement issued by the Chief Executive Officer (CEO) of the Chamber, Senyo Hosi.

The statement said the government made payment to the tune of $1 billion as of January 13, 2020.

The debt was accrued for four years; between July 2011 and July 2015. According to the bulk oil distributors the debt was estimated at $1.43 billion.

But the BDCs to slash $432 million, leaving about $1 billion to be cleared via an agreed payment plan with the government.

Breakdown of the haircut agreed by BDCs and the government

Forex Loss Under Recovery Attribution USD 55 million

Unconfirmed transactions by BoG USD 93 million

Interest Rate Haircut on RVF USD 153 million

Interest Rate Haircut on FLURI USD 87 million

Delay in Payment of RVF and FLURI from Cut-off Date USD 44 million

Together with the interest, the amount that had accrued was however capped in March 2018, which means that beyond this point, no new amount was calculated on neither the actual amount nor interest.

The highest of the three components of the debt was the Forex Loss Under-Recovery (FLUR) which refers to the loss incurred by BDCs as a result of the differentials between the 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.

This component was 806.25 million dollars.

It was closely followed by Forex Loss Under-Recovery Interest (FLURI) which is the interest accrued on the delayed payments of forex loss under-recoveries; at 99.67 million dollars.

Also, the Real Value Factor which is the interest accrued on the delayed payments of price under-recoveries, stood at 97.16 million dollars.

The payments were done in three forms; cash, Bank of Ghana as well as Energy Sector Levy bonds.

Payment Type Amount

Cash Payments USD444.72mn

Bank of Ghana Bonds USD219.08mn

ESLA Bonds USD339.28mn

Total USD1.003bn