{"id":314337,"date":"2017-04-27T08:56:46","date_gmt":"2017-04-27T08:56:46","guid":{"rendered":"http:\/\/citifmonline.com\/?p=314337"},"modified":"2017-04-27T08:56:46","modified_gmt":"2017-04-27T08:56:46","slug":"15-year-energy-bond-timely-for-banks-rising-npls-cal-bank-md","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2017\/04\/15-year-energy-bond-timely-for-banks-rising-npls-cal-bank-md\/","title":{"rendered":"15 year energy bond timely for banks\u2019 rising NPLs \u2013 CAL Bank MD"},"content":{"rendered":"
Banks are optimistic of significant improvement in their non-performing loan portfolios as government initiates moves to clear all outstanding debts owed them.<\/p>\n
[contextly_sidebar id=”80DostY5RMYogVYj1UbruIyMuKKitXz1″]The assurance comes on the back of government\u2019s plan to raise bonds to clear the debts owed in the energy sector.<\/p>\n
The Vice President, Dr. Bawumia at a meeting in Washington last week announced that the government will issue a 15 year bond<\/a><\/strong><\/span> to settle the 2.4 billion dollars debt in the energy sector.<\/p>\n 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.<\/p>\n The Managing Director of CAL Bank, Frank Adu Junior speaking to Citi Business News<\/strong> lauded the move and explained that it should help correct the bad loans of affected banks.<\/p>\n \u201cIf the bonds are issued, what it means is that we are paid out completely. The bond is issued to raise cash to pay the debts so whoever is owed is paid and the ESLA is now used to amortise the bond for the next fifteen years,\u201d he said.<\/p>\n