The Finance Ministry may write off about 141 million dollars debt sitting on the books of GRIDCO.
The debt was incurred after GRIDCO was formed out of the Volta River Authority.The debt has in recent times affected the operations of the state power delivery company, making it unattractive to investors.
Speaking to Citi Business News after GRIDCO’s Annual General Meeting, Deputy Minister for Energy Joseph Cudjoe was hopeful the clearance of the debt will give GRIDCO a fresh financial start.
“It is expected to have been signed off by the Finance Minister anytime from now so that GRIDCo’s balance sheet would have been cleaned off that indebtedness. Proposals have been made to clear off 141 million dollars. It is in two parts, one part is 120 million dollars another part is 21 million dollars” he said.
Mr Cudjoe explained that it makes sense to convert debt into equity since the debt is owed by the Volta River Authority, another state company in the power sector.
He pointed out that since the government is the major shareholder, it will prudent for the government to take that debt and write it off.
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