The Government has paid an estimated $1 billion of legacy debts to the Chamber of Bulk Oil Distributors (CBOD), completing all payments accrued for four years between July 2011 and July 2015.
According to the CEO of CBOD’s, Senyo Hosi, the Government made the payment on 13th January 13, 2020. The BDCs agreed to a haircut, which is a slash of $432 million, remaining $1 billion to be paid through a mutual agreed payment plan.
Together with the interest, the amount that had accrued was capped in March 2018, which means that beyond the agreed amount, no new amount was calculated on the actual amount and interest. The highest of the three components of the debt was the Forex Loss Under-Recovery (FLUR), which is the loss incurred by bulk distributors 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 foreign exchange rates were supplied by the Bank of Ghana (BoG) on behalf of the Government.
This component was $806.25 million. It was closely followed by Forex Loss Under-Recovery Interest (FLURI) – the interest accrued on the delayed payments of forex loss under-recoveries – at $99.67 million. The Real Value Factor which is the interest accrued on the delayed payments of price under-recoveries was at $97.16 million. The payments were done in three forms; cash, the BoG and Energy Sector Levy bonds.
