Government has been charged to expedite plans to clear 2.4bn cedis energy debt
Government’s indebtedness to the energy sector has been cited as one major threat to the growth of the sector.
The issuance of an energy bond they believe will rescue the country from its power crisis. Government has announced plans to issue a 15-year bond to settle all outstanding debts in the energy sector.
READ ALSO: ECG restores power to 85% of blackout areas across Ghana
This bond is expected to improve the financial strength of the State Owned Enterprises (SOEs) in the energy sector and make them competitive.
Reports say that as at 31st December 2016, government’s net debt in the energy sector was 2.3 billion dollars.
According to the General Manager for Finance and Administration at WAPCo, Mike Enendu government must endeavor to fulfill the promise to enhance the progress of the sector.
“What is very good for me is that the government is working very seriously to clear the debt in the energy sector. For me that is critical.
READ ALSO: We will sell VRA thermal plants to clear debt - Govt
However the method that they decide to use to declare it, I’m sure that they’re the authorities there who have the requisite experience and knowledge, properly well guided on whatever method that they want to use,”.
“But for those of us in the sector, we are looking forward to seeing that the debt problems in the sector are sorted out,” he stated.
Meanwhile, banks are also optimistic of significant improvement in their non-performing loan portfolios as government initiates moves to clear all outstanding debts owed them.
The debt has been cited as a threat to the banking sector as it has led to about 36 percent increase in the bad loans of banks as at February 2017.