Executive Director for the African Centre for Energy Policy (ACEP), Ben Boakye, has questioned the stance of the IMF regarding the $420m debt arrangement between the Ghana National Petroleum Corporation (GNPC) and Lukoil International Trading and Supply Company (LITASCO).
A debt arrangement, Mr Boakye notes, has been authorized by the Finance Minister, Ken Ofori-Atta.
Speaking on the NorvanReports X Space on the topic “Is JOHL Under Political Capture? – Analyzing Implications of Securitizing JOHL assets for $420m LITASCO Loan”, Mr Boakye noted that given that the country is currently under an IMF programme for which there is a framework developed by the Fund to reduce debts in the energy sector, it is important that the IMF looks at such agreements as they are likely to increase debts in the energy sector.
“I don’t know how the IMF sees this debt arrangement where the Finance Minister has told the GNPC to borrow over $420m from LITASCO. I don’t know if they approved of it because these are contingent liabilities.
“The IMF says Ghana will owe over GHS 97bn in energy debts over the medium term, and the question is that, was the LITASCO debt part of the debt forecast or not. And if not then that means we will be paying more as a nation. So we really need to be clear on how much we really owe,” he quipped.
There have been calls by the ACEP and other Civil Society Organisations (CSOs) in the country on Government and the GNPC for the immediate cessation of the $420 million debt arrangement between Lukoil International Trading and Supply Company (LITASCO) and the Ghana National Petroleum Corporation (GNPC).
The call for the cessation of the debt arrangement aims to prevent the securitization of Jubilee Oil Holdings Limited (JOHL) assets against the aforementioned debt amount.
Speaking further during the X Space discussion, Mr Boakye noted that over $9bn in oil revenue has accrued to the State in the last 12 years of crude oil production by the country.
However, the use of the oil revenue has been pathetic and therefore called for a remodeling of the country’s governance pertaining to the use of oil revenues.