Some banks in the country are reportedly withdrawing lines of credit to the Bulk Oil Distribution Companies (BDCs) following reports that the National Petroleum Authority (NPA) has fully paid arrears owed them.
The National Petroleum Authority in February declared that it has settled the GH¢ 412 million debt owed the BDCs.
But according to the BDCs, the reports have made banks hesitant to release monies to fund their petroleum imports. Experts say the situation could affect regular supply of petroleum products onto the Ghanaian market and subsequently lead to shortages.
Chief Executive Officer (CEO) of the Chamber of BDCs, Senyo Hosi said the NPA still owed his members in excess of GH¢2 billion.
“Sometimes these communications come out because the earlier information has sent mixed reaction within the financial sector because people got a bit apprehensive and we are withdrawing funding lines so it’s important that some of these things are put into proper perspective,” said Hosi.
He argued that “if one BDC alone is owing a bank over GH¢300 million and the NPA is saying the debt is only 400 and that 400 has not been paid, it’s very simple for us to ask where the money is,” adding that he expects government to come out clean on the matter in order to “inject some confidence back into the industry.”
Credit: citifmonline