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Business News of Thursday, 22 May 2003

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GCB Says It Has Redeemed TOR Debt

Ghana Commercial Bank (GCB) says it has "creditably" overcome its over exposure to the Tema Oil Refinery for the import of crude oil.

The Bank is reported to have funded more than 2.1 trillion cedis of the 3.4 trillion cedis TOR owed as at the end of February 2001.

It said, even though, it had been funding the import of crude oil over the years, this particular transaction with TOR was associated with "constraints" which took a serious toll on the Bank.

Speaking at the Bank's 50th Anniversary celebrations in Accra on Tuesday, Mrs. Matilda Obeng-Ansong, Managing Director of GCB, said,"with the assistance of Government and the Central Bank, we have been able to come out of it creditably."

The total debt owed the bank in overdrafts and loans stand at 2.1 trillion cedis and creditors 1.89 trillion cedis.

Additionally, an under recovery of costs for January and February 2001 was 207.3 billion cedis, making the total debt owed the Bank 3.392 trillion cedis.

The government managed to convert 2.4 trillion cedis of the debt owed mainly to the bank into medium term bonds at the end of last year, removing the amount raised by the bonds from the TOR balance sheet.

The government has absorbed the interest charges on the Bonds.

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