The President, Nana Akufo-Addo, who made this revelation in Zambia, during his interaction with the Ghanaian community, said the Finance Minister, Ken Ofori-Atta, is championing this cause.

[contextly_sidebar id=”9i6WkZKFKUKKX0rxxo9IOyaXTxZVyYZe”]He revealed that government had already initiated programmes and policies that will ensure that the debt is settled.

“The debt of some 2.4 billion dollars in our Energy Sector is making it difficult to attract investment into the Energy sector. This is not allowing us to retool and recapitalize our facilities and therefore once again, solving this financial problem is a very acute problem for us.”

“I have a very imaginative and excellent Finance Minister. He has a problem and I have a problem. He is also my cousin and a lot of people say I have made my cousin the Finance Minister, but I say to myself that if I find someone who has the capability and the ability because he is my cousin I should deny myself the opportunity to work. I will not think of it that way. He is one of the best Finance Ministers our country will ever have. He is already beginning to show it,” the President told the Ghanaian community.

These measures that the President have hinted of may include government’s decision to issue a 15 year bond to settle the huge debt.

This is not the first time the President has spoken about the challenges facing the Energy Sector.

He spoke about it when he appeared before Parliament to deliver his first State of the Nation Address, saying the sector has enormous problems that must be addressed urgently.

“We have inherited a heavily indebted energy sector with a net debt reaching $2.4bn as of December 2016. I have to point out the alarming facts that $800 million of this debt is owed to local banks which threaten their stability and that of the whole financial sector. Indeed, the huge indebtedness of the energy sector constitutes the single major hurdle to Ghanaians enjoying reliable and affordable electricity supply,” Akufo-Addo said.

He indicated that he will introduce a tariff policy in the sector as part of measures to settle the huge debt.

The Energy Minister, Boakye Agyarko, also made mention of the same challenge, saying the sector is cash strapped to run its activities.

“The energy sector we find now is seriously cash-strapped to the extent that we now live in a debt merry go round,”  Boakye Agyarko complained.

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By: Marian Ansah/citifmonline.com/Ghana

The post We’re working to settle $ 2.4 bn Energy Sector debt – Nana Addo appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking on Eyewitness News, NDC Member of Parliament for Yapei Kusawgu, John Jinapor, said the Minority is trying to avoid the controversy that engulfed the $2.25 billion domestic bond issued in April 2017.

[contextly_sidebar id=”YLjjENd5Eyzo6ZgSv01r93X9njySNOtO”]The Minority has already called for a full-scale parliamentary probe into the $2.25 bond issue, amidst concerns over the perceived claims of secrecy and conflict of interest.

For this 15-year bond, Mr. Jinapor said the Minority is looking for “full disclosure. Other than that, we are going to kick against that vehemently.”

“I am serving notice that those of us on the Minority side will oppose it vehemently if it is not transparent, if it is not made clear and if they go through this Franklin Templeton style of raising bonds.”

The government announced plans to issue the 15-year bond in April in 2017, to settle all outstanding debts in the energy sector.

The bond is also aimed at improving the financial strength of the State Owned Enterprises (SoEs) in the energy sector and make them competitive.

But since the announcement, Mr. Jinapor said no substantial information has been made available on this particular bond in addition to the fact the full energy debt stock is not known.

Not satisfied with approach

Beyond this, Mr. Jinapor said government’s approach to the energy debts “is not a very good approach”

He explained that “if you do a bond, it comes at a cost. For any money you borrow, there is an opportunity cost, there is a risk element, and the price of money you borrow is the interest.”

“What is the interest? How transparent is it? What are the flows from the Energy Sector Levy? Are they sustainable to pay on a year basis? If it is sustainable, why then must you go for that loan? They are simply going to borrow against the levies,” Mr. Jinapor noted as some questions he had on the matter.

Per his assessment, the government wants to borrow money to pay the debts so that the inflows will be used to service the loan.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Minority to ‘vehemently’ resist $2.4bn bond if… – John Jinapor appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking on Eyewitness News, Mr. Adongo said the apparent secrecy surrounding that $2.25 billion bond had eroded investor confidence.

[contextly_sidebar id=”vdnzS0oA984vr0iKWFcuId10BdkcV3wF”]“The biggest challenge for this debt is the fact that the international investor community has lost confidence in the Ghanaian capital market. They are not very happy with the way the $2.25 billion debt went, and they are not happy with the way government is running away from answering basic questions that will satisfy the market.”

According to the MP, indications are that, it may take about a year for the processes to start on the bond despite government having used days to raise the $2.25 billion bond.

The government announced plans to issue the 15-year bond in April in 2017, to settle all outstanding debts in the energy sector.

The bond is also aimed at improving the financial strength of the State Owned Enterprises (SoEs) in the energy sector and make them competitive.

We won’t forget about controversial bond

In Mr. Adongo’s view, the government is buying time to see if it can manoeuvre and get the Minority in Parliament to back down on its claims of conflict of interest, among others.

“They are going to use six months to get a transaction advisor. That transaction advisor will spend another three months to come back to advise government, then you start a process basically to push it into one year, by which time they believe the investor community would have forgotten about this fraudulent deal which has rocked Ghana.”

“They should rather be doing a lot to allay the fears and concerns as to how one of the most efficient financial markets in the world suddenly became a Ponzi financial system,” the MP asserted.

Mr. Adongo failed to substantiate his claims about the loss of investor confidence over the 15-year bond.

He however insisted to the Eyewitness News host that, “The truth is they know that the investors are running away from this bond.”

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Investors may shun $2.4 bn bond – NDC MP appeared first on Citi 97.3 FM - Relevant Radio. Always.