Paying BDC debts will give us respite – OMCs

Business News of Friday, 20 January 2017



Fuel 620x400File photo

Oil Marketing Companies (OMCs) have expressed confidence in the new administration to complete the payments of the BDC debt.

According to them, adequate structures have been put in place, for the payment of the debt without any undue delays.

The prompt payment of the debts is expected to among other things facilitate the purchase of fuel products for onward supply to the various OMCs.

Government is currently indebted to about 17 Bulk Oil Distribution Companies in excess of 500 million dollars. President of the Association of Oil marketing Companies, Kwaku Agyemang Duah who spoke to Citi Business News urged the new government to complete the payment of the debt.

“The BDC debt is being handled and it’s a good thing. Structures have been put in place and that accounted for the energy levy and so far I think it’s not bad and I know the government is continuing, the previous government and this government I believe will continue with it,” Mr. Agyemang said.

This same confidence has been expressed by players in the banking industry. The banks remain the most affected as a result of the debt but have also expressed confidence that the new administration will not fail to complete the payment of the debt.

In an earlier interview with Citi Business News the Managing Director of HFC bank, Robert Le Hunte was optimistic the incoming Nana Akufo-Addo government will continue with the plans laid down by the Ministry of Finance in paying the legacy debt. According to him, the change in government should not in any way alter the process already agreed on to pay the affected banks.

“I think that’s part of maturity as a government and when a government makes a decision; it’s not within the individual’s might but the whole country. I think the money owed in the legacy debts have gone through a number of iterations, discussions and audits and it was agreed upon as such I expect the commitments made by one government will be carried forward to another government,” he told Citi Business News.