Gov’t settles rest of TOR debt
The government has settled the remaining GH¢572 million debt owed by the Tema Oil Refinery (TOR) to the Ghana Commercial Bank (GCB).
The bank, which has been the main financier of the country's downstream petroleum sector, was paid a total of GH¢445 million out of the total debt of GH¢ 484million in March last year by government.
The settlement of the debt is expected to improve GCB’s liquidity position and enhance the bank’s financial position to meet the primary reserve requirements of the Bank of Ghana, which had been violated over the years.
The Board Chairman of the bank, Mr Pryce Kojo Thomson, who made this known this at the 17th Annual General Meeting (AGM) of the bank with its shareholders, noted that the settlement of the debt would enable the bank to resume lending to other borrowers who want to transact business.
He, however, stated that the bank would continue to do business with government but would make sure that money loaned to government was collected.
According Mr Thompson, both the operating environment and the financial performance of the bank improved in 2010 as compared to those of previous years.
In 2010, the bank's net income of GH¢259.9 million, 57 per cent higher than that of 2009 which was seven per cent below the net income in 2008.
This was achieved after an impairment charge on loans and advances of GH¢70.9 million which was almost twice the 2009 loans impairment charge of GH¢36.7 million.
Also, the bank's distributable profit after tax was GH¢56.1 million, 198 per cent higher than the after tax profit of GH¢18.8 million in 2009.
The Chairman also noted that the bank made an increase of 97 per cent profit in dividends in the year 2010.
He recalled that against the background of a significantly improved financial results, the Board had recommended a dividend of 0.07Gp per share, which amounted to GH¢18.6 million as against 2009's dividend of 0.356Gp per share.
Mr Thompson expressed the hope for a moderate growth in the global economy in 2011.
"A slow recovery is expected in developed economies while we in Ghana look forward to much higher prospects for economic growth of 12.3 percent of GDP", he said.
He also noted that the change in the economic climate in developed and emerging economies could lead to an increase in domestic prices of petroleum products and general price levels in the country.
The external auditors of the bank, "Pannel Kerr Forster" have been replaced with "KPMG Ghana" in compliance with regulatory directive from the Bank of Ghana that "all banks whose external auditors have been at post for more than five years should initiate steps towards replacing them."
The bank, which has been the main financier of the country's downstream petroleum sector, was paid a total of GH¢445 million out of the total debt of GH¢ 484million in March last year by government.
The settlement of the debt is expected to improve GCB’s liquidity position and enhance the bank’s financial position to meet the primary reserve requirements of the Bank of Ghana, which had been violated over the years.
The Board Chairman of the bank, Mr Pryce Kojo Thomson, who made this known this at the 17th Annual General Meeting (AGM) of the bank with its shareholders, noted that the settlement of the debt would enable the bank to resume lending to other borrowers who want to transact business.
He, however, stated that the bank would continue to do business with government but would make sure that money loaned to government was collected.
According Mr Thompson, both the operating environment and the financial performance of the bank improved in 2010 as compared to those of previous years.
In 2010, the bank's net income of GH¢259.9 million, 57 per cent higher than that of 2009 which was seven per cent below the net income in 2008.
This was achieved after an impairment charge on loans and advances of GH¢70.9 million which was almost twice the 2009 loans impairment charge of GH¢36.7 million.
Also, the bank's distributable profit after tax was GH¢56.1 million, 198 per cent higher than the after tax profit of GH¢18.8 million in 2009.
The Chairman also noted that the bank made an increase of 97 per cent profit in dividends in the year 2010.
He recalled that against the background of a significantly improved financial results, the Board had recommended a dividend of 0.07Gp per share, which amounted to GH¢18.6 million as against 2009's dividend of 0.356Gp per share.
Mr Thompson expressed the hope for a moderate growth in the global economy in 2011.
"A slow recovery is expected in developed economies while we in Ghana look forward to much higher prospects for economic growth of 12.3 percent of GDP", he said.
He also noted that the change in the economic climate in developed and emerging economies could lead to an increase in domestic prices of petroleum products and general price levels in the country.
The external auditors of the bank, "Pannel Kerr Forster" have been replaced with "KPMG Ghana" in compliance with regulatory directive from the Bank of Ghana that "all banks whose external auditors have been at post for more than five years should initiate steps towards replacing them."
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