Ghana plans to write off $120 million of TOR refinery debt — MyJoyOnline
In Ghana, the Ministry of Finance plans to write off about $120 million of the historical debt of the state-owned Tema Oil Refinery (TOR). This could reduce the financial burden on the enterprise, whose outstanding legacy liabilities amount to approximately $400 million.
Debt restructuring
TOR Managing Director Edmond Kombat said that the refinery has already completed the first stage of restructuring, which significantly reduced its historical debts. According to him, following this, the amount of such liabilities fell to more than $400 million.
Kombat said that the Ministry of Finance intends to write off part of TOR's debt to the state. He suggested that a write-off of approximately $120 million could be included in this year's budget. This was reported by MyJoyOnline.
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Company creditors
According to the head of TOR, the enterprise's historical debt consists of five main obligations to various creditors. These include private companies Sahara and BP, as well as state-owned Ghana National Petroleum Corporation and Volta River Authority.
Kombat noted that negotiations with private creditors may be more difficult. At the same time, the refinery's management is considering the possibility of negotiating discounts on the debt amounts. Even if part of the debt is written off, TOR's management will need to demonstrate, according to MyJoyOnline's assessment, the enterprise's ability to operate profitably and meet its financial obligations.
