The National Petroleum Authority (NPA) has revealed that government is expected to issue a $530 million bond to raise funds to settle its indebtedness to the Bulk Oil Distribution Companies (BDCs).
The debt was incurred as a result of under recovery from subsidies on petroleum products.
Mr. Asaga told the Daily Graphic that government will hopefully repay the debt by the third quarter of 2016.
The bond, according to Mr, Asaaga would also clear all legacy debt obligations to the BDCs.
The accumulated debts have also affected the balance books of most commercial banks in the country.
The development was reported to have contributed significantly to the Non-Performing Loan (NPL) portfolio of the commercial banks.
It also significantly affected the ability of the commercial banks to offer credit facilities to businesses and individuals.
GH¢2bn debt payment won’t affect petroleum prices
Debt payment won’t affect petroleum prices
Bulk Oil Distributors (BDCs) in Ghana earlier ruled out any positive effect of the payment of government’s outstanding debts owed them, on the prices of petroleum products.
According to the oil distributors, the amount expected to be paid by government fall within the existing pricing structure which will have no significant impact on prices.
“All the solutions being proffered now are within the existing pricing structure; there will be no changes to the price because of the solution,” the Chief Executive Officer of the Chamber of Bulk Oil Distributors, Senyo Hosi said in an interview with Citi Business News.