Business News of Wednesday, 4 October 2017
Some banks in the country affected by the 2.5 billion dollars Energy sector debt have expressed concerns over delay in issuing a bond to clear the debt.
The development follows the assurance by government (the Finance Ministry) to the effect that funds will be raised through lead arrangers, Fidelity Bank and Standard Chartered Bank latest last month – September 2017.
The energy sector debt rose significantly during the country’s power crisis between 2012 and 2016 and currently poses a great challenge to the stability of Ghana’s financial sector.
In an encounter with the media, the CEO of Zenith Bank, Henry Oroh pointed out the devastating impact the debt has on the financial sector (particularly the banking industry) and the need to fast-track its payment process.
He said: “the energy debt has been a major problem for the industry. It’s been there for four years. It’s quite monumental, 2.5 billion dollars is quite big. As long as those debts are there it becomes a drain on liquidity of banks. Our capacity to support the government and the private sector diminish by the fact that those debts remain unpaid”.
However, the Ministry of Finance is yet to provide any explanation for the delay.