Government says the release of monies for the settlement of debts owed contractors should positively impact on all aspects of the economy. According to the Finance Ministry the amount totaling nearly 600 million Ghana cedis is to settle debts owed road contractors and others who have provided various services to government but have not been paid from as far back as 2008. Some road contractors have blamed the suspension of projects awarded to them on government’s failure to settle the debts, whilst the banks also say this has affected their ability to reduce interest rates. Deputy Finance Minister, Seth Tepker however explained to Joy Business there should not be any more excuses now that government has paid about 70 percent of the debt. “When the contractors pay what is due to the banks, you expect the banks to strengthen their balance sheet and financial position and their exposure to government will be reduced and then they will be able to lend more to the private sector and government business,” he said. Mr Terkper believes with the payment, contractors will revamp their work and generate employment for many. A Financial Consultant, Sydney Casely-Hayford however doubts claims that the amount paid represents 70 percent of what government owes. He said interest rates could have been significantly impacted if government had settled a lot more of its debts. Source: Joy News/Ghana