The Ghana Chamber of Bulk Oil Distributors (CBOD) has disclosed that government on January 13, 2020, finalised all payments in respect of the BDC legacy debts.

The debts were accrued over from July 2011 to June 2015 with interest capped in March 2018.

According to Senyo Hosi, who is the CEO of the Chamber, “the payments were executed in the form of ESLA Bonds to Legacy Bonds Limited, an SPV jointly owned by the Ghana Association of Bankers and the CBOD for redistribution to beneficiary banks and petroleum service providers.”

The BDC Legacy Debt

The BDC legacy debt comprised Forex Loss Under-Recovery (FLUR) which is the loss incurred by BDCs as a result of the differentials between the GHS/USD forex rates set by the National Petroleum Authority (NPA) for pump prices and the rates at which FX rates were supplied by the Bank of Ghana on behalf of government.

According to the Chamber, a total of $806.25mn was incurred by government from July 2011 to June 2015.

Another debt was the Forex Loss Under-Recovery Interest (FLURI) which is the interest accrued on the delayed payments of forex loss under-recoveries. A total of $99.67mn was accrued by Government with a tenor cap set on March 31, 2018.

Also, there was the Real Value Factor which is the interest accrued on the delayed payments of price under-recoveries. A total of $97.16mn was accrued by Government with a tenor cap set on March 31, 2018. Mr Hosi said all claims were duly validated by Ernst and Young.