BDCs bank debts to reduce by over Ghc 500 million

By Sam Edem

The debt owed banks in the country by Bulk Oil Distribution companies (BDCs) is expected to reduce significantly in the course of the week.

The anticipated reduction based on information to the media about funds disbursed from the energy bond on Wednesday 8th November 2017 to Legacy Bond Limited (LBL) for onward distribution to the indebted BDCs.

Managing Director of CAL Bank, Frank Adu Junior, said: “Legacy Bond Limited has been allocated 542.1 million cedis in bonds and these bonds will be shared in a certain prorated formula to the various BDCs and the bonds will be assigned by LBL to the various banks who are owed money by the BDCs in another formula that has been determined. So the BDC debts outstanding on the books of banks collectively by the end of this week will go down by 541 million cedis”.

LBL is an institution jointly established by the Chamber of Bulk Oil Distributors (CBOD) and the Ghana Association of Bankers (GAB), tasked with repayment of the legacy debt.