Gov’t Urged to Clear Remaining Energy Sector Debt

Government has been urged to issue the second tranche of the energy bond to help clear about 5.3 billion cedis debt in the energy sector.

This, they say will restore confidence in both the financial and energy sectors.

Government in November last year, sought to raise 6 billion cedis under the first tranche of the bond, to clear the 10 billion cedis energy debt.

It however managed to raise only 4.7 billion cedis at an interest of between 19 and 19.5 percent.

A former Chief Executive Officer of GRIDCO, Engineer William Amuna is however hopeful that the Finance Ministry will clear the debt soon.

“The ministry of finance is working on that and I think it’s far advanced. We have heard of the various bonds that are coming in and we expect that very soon that will be cleared” he said.

Stressing on the need to clear the debt, Mr. Amuna stated that government can follow the process it did in clearing the part to also clear the second part of the debt.

First energy bond

Government failed to raise the 6 billion cedis for the energy bond it issued in October last year.

Government was able to raise 3.4 billion cedis as at Friday, October 27, 2017.

As a result, the managers of the bond announced an extension of the auction for the 10 year bond by one more week.

The 3.4 billion cedis raised, represents about 57 percent of the 6 billion cedis needed.

But it is worth noting that more than seventy percent or 2.5 billion cedis of the amount was realized from the 7 year bond issued.

The 10 year bond, attracted 902 million cedis far less than the 3.6 billion cedis target.

Source: Citibusinessnews