The National Petroleum Authority (NPA) has revoked the licenses of several Oil Marketing Companies (OMCs) in Ghana over the past two years due to their failure to meet regulatory requirements, according to Abass Ibrahim Tasunti, Director of Regulation and Planning at the NPA. Speaking on Joy News’ PM Express Business Edition on Thursday, October 4, he highlighted that the NPA is continuously working to strengthen these requirements to ensure compliance and maintain the integrity of the industry. “Every company has to meet certain requirements to obtain a license, and these are publicly available on our website. If you meet the requirements, you get the license, just like in any other business,” Abass Tasunti explained. He acknowledged concerns about the rising number of OMCs but noted that the regulatory framework is designed to address these concerns. “Over the past two years, we’ve revoked a number of licenses because some companies were not meeting the necessary standards,” he added. Abass Tasunti stated that the NPA has been updating the regulatory requirements over time to align with global standards and ensure that only qualified companies operate in the industry. “We are always looking at how we can raise the bar to ensure only companies that meet the strict standards are allowed to operate,” he said. While new companies continue to meet the necessary standards and enter the market, Abass Tasunti underscored that the industry itself plays a critical role in identifying and addressing non-compliant companies. He expressed optimism that industry stakeholders, through collaboration with NPA, will continue to strengthen regulatory oversight.
A significant number of bondholders who participated in the Eurobond Debt Exchange Programme opted for the disco menu of new notes.
This means that the investors will take 37 percent haircut and receive interest payments of 5 percent from 2024 to July 2028, and 6 percent interest thereafter.
They are therefore expected to receive three new bond instruments.
On the other hand the rest of the bondholders opted for the par menu, which will result in them not facing any nominal losses but will bet 1.5 percent interest on the new bonds maturing in January 2037.
These details were captured in the consent document issued by the bondholders after they agreed to swap their old bonds for new papers during the Eurobond Debt Exchange Programme.
The bondholders in the document added that the successful completion of this Eurobond Debt Exchange programme is a critical component of Ghana’s debt restructuring process under its programme with the International Monetary Fund.
Investors will swap their securities for new notes on or around October 9, with the complete settlement process expected to be finalized shortly thereafter, the statement from the investors explained.
The Debt Exchange Programme
The Eurobond Debt Exchange Programme received about 98.6 percent subscription by the bondholders. This was part of government’s efforts to restructure some $13 billion owed external creditors.
Government on September 5 2024 launched the Eurobond Exchange Programme on the London Stock Exchange inviting eligible holders of its Eurobonds to tender their existing notes for either or a combination of two menus of New Notes of the Republic.
The deal will help Ghana in securing IMF’s approval on the third progamme review.
According to the Finance Minister Dr. Mohammed Amin Adam, the exercise will immediately reduce Ghana’s debt stock by a significant margin.
“Ghana is now on track to reach debt to GDP ratio of 55 percent by 2028, based on this development and other initiatives carried out by government”, Dr. Adam said.