VRA to settle energy debt by March 2017

Berlinda Entsie 14:00 - 23 March 2017

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The Volta River Authority (VRA) owes the banks about 4.4 billion cedis. However, three tranches have been paid to the 13 affected banks. Government says it will pay an amount of 160 million cedis to these banks to reduce its energy debt.

By the end of March 2017, the energy sector will commit about 160 million cedis to settle some banks that the sector owes.

President of the Ghana Association of Bankers, Alhassan Andani says this is a continuation of earlier payments made by the erstwhile NDC government.

He also says it is a restructured facility which will release 160 million cedis at the end of March to the various banks.

“Government is on schedule with the reductions as was agreed, we have received our advanced payments. We have two hundred and fifty million; we have received the September quarterly payments and also received the December quarterly payments with invoices for March and there is every indication that we will get paid so that is really coming down,” he explained.

Reports say the Volta River Authority (VRA) owes the banks about 4.4 billion cedis. However, three tranches have been paid to the 13 affected banks.

Mr. Alhassan Andani also told Accra-based Citi FM that the settling of the debts should reduce the number of non-performing loans in banks.

“The VRA debt has been paid down…But as I said 2.4 billion that was restructured for five years is being repaid on time in the amounts that we agreed on with government sometimes we don’t like reporting that it is doing well but it is doing very well I must say".