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Business News of Saturday, 24 December 2016

Source: Myjoyonline.com

Gov't releases GHC166 million to clear energy sector debts

Government is set to release GH¢166 million to banks as it takes steps to quickly clear all the energy sector debts owed banks.

This will represent the third tranche payment to banks, bringing the total amount advanced to about GH¢582 million.

President of the Association of Bankers, Alhassan Andani tells JOYBUSINESS the development could help improve their financial position and possibly reduce the cost of credit.

Government has agreed with the banks to make some payments every quarter over the next five years.

According to some analysts, the over GH¢2 billion debts nearly led to the collapse of some banks, if the necessary commitment had not been secured earlier this year.