23rd July 2024

CEO of Chamber of Bulk Oil Distributors (CBOD), Senyo Hosi and Vice President Bawumia

The chief executive officer of Ghana Chamber of Bulk Oil Distributors (CBOD), Senyo Hosi, has announced the clearing of over $1billion legacy debt accrued over the period July 2011 to June 2015.

He explained that the payment, which was made in January 13 2020, represented the full and final payment for the legacy debts.

A statement from CBOD indicated that the debt was estimated at $1.43billion, but the BDCs agreed to a haircut, with a slash of $432million, leaving about $1.003billion to be cleared through an agreed payment plan.

Components

The statement indicated that the legacy debt was in three folds and 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 are supplied by the Bank of Ghana on behalf of government. This component was $806.25.

 

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. That was $99.67 million.

 

The other component was the Real Value Factor, which is the interest accrued on the delayed payments of price under-recoveries. That stood at $97.16 million.

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