Seven SOEs to pay salaries with over GHc300 million from the CBG

Seven SOEs to pay salaries with over GHc300 million from the CBG

- The CBG is set to release GHc312 million for distribution to seven State-Owned Enterprises (SOEs) in Ghana

- The funds will be used for the payment of salaries of employees for six months

- The directive comes from the Ministry of Finance and has been packaged as a concessionary credit facility that comes with a moratorium

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YEN.com.gh has learned that the salaries of employees of seven State-Owned Enterprises (SOEs) will be paid with GHc312 million from the Consolidated Bank of Ghana (CBG).

The CBG’s decision is a result of a directive from the Ministry of Finance and is intended to help stabilise the operations of the SOEs.

Information available shows the concessionary credit facility has been guaranteed by the government and comes with a moratorium. It will be used to ensure the SOEs promptly pay salaries of employees for the next six months.

READ ALSO: Report shows banks offer flexible packages to firms despite high risk of default

Per a report by thebftonline.com, the SOEs to benefit are:

  • Ghana Airport Company Limited
  • Ghana Civil Aviation Authority
  • PSC Tema Shipyard and Dry-dock
  • Intercity STC
  • Metro Mass Transit Limited
  • Ghana Technology University College
  • Ghana Institute of Management and Public Administration

YEN.com.gh understands that the package was part of the supplementary estimates presented to Parliament as part of the mid-year budget review by the Minister of Finance, Ken Ofori-Atta.

Ofori-Atta explained that the beneficiary state institutions are important for economic growth and, as such, the decision was reached to ensure salaries are paid on time.

Seven SOEs to pay salaries with over GHc300m from CBG
Managing Director of CBG, Daniel Wilson Addo Source: Daily Guide
Source: UGC

This, he added, would go a long way to help prevent layoffs that could negatively affect operations.

His ministry has asked the seven SOEs to establish a banking relationship with the CBG so funds can be channeled through accounts for them.

The process, however, will have to be endorsed by the Bank of Ghana and the board of the CBG.

In other news, ARB Apex Bank recorded a profit before tax of GHc1 million for the 2019 operational year.

This represents a 10% increase in the results it posted in the preceding year which was GHc0.91 million profit before tax.

The Bank’s total operating income increased by 17% from GHc55.5 million in 2018 to GHc64.96 million in 2019 despite the falling interest rates that affected its profitability.

READ ALSO: GCB's shareholders to receive 20 pesewas per share for the 2019 financial year

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Source: Yen.com.gh

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