Finance Ministry to write off $120m of TOR's legacy debt - MD

The Managing Director of the Tema Oil Refinery’s (TOR), Edmond Kombat has disclosed that the Finance Ministry has indicated plans to wite off about US$120 million of the company's legacy debt This is expected to ease the financial pressure on the state-owned refinery. TOR MD made the disclosure when Parliament’s Energy Committee paid a working visit to the refinery. According to him, the company's legacy debt currently stands at about US$400 million following an earlier restructuring exercise. “We do have legacy debts on our books. When we did the restructuring, the first phase brought it down to about $400-and-something million,” he said. Mr Kombat explained that the Ministry of Finance plans to capture the proposed debt write-off in the 2026 budget, which would result in a further reduction in the refinery’s outstanding liabilities. “Currently, the Ministry of Finance is saying they are going to write off some of the debts owed to them. I think they are including it in this year’s budget. It’s about $120 million. So if that is taken out, it will also further bring the debt down,” he said. Despite the planned write-off, the TOR Managing Director said the refinery still has substantial debts to private companies and other state-owned institutions. He mentioned Sahara and BP among TOR’s private creditors, noting that management was engaging them to negotiate possible reductions in the amounts owed. Mr Kombat also disclosed that TOR owes the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA). “We also owe GNPC and VRA. Because they are state institutions, we will need your help as the Parliamentary Select Committee to help net it off,” he told members of the committee. He therefore appealed to the Energy Committee to assist management in resolving the obligations owed to GNPC and VRA, while negotiations continue with TOR’s private creditors. The proposed debt relief, he said, would help improve TOR’s financial position and reduce the burden of its accumulated legacy obligations. Raphael Ghartey is writer and reporter with the MG News team at Media General, serving TV3, 3News, Onua FM, Onua TV and more platforms. GMA refutes Miracles Aboagye's claim that vessels in Ghana’s waters are not monitored GPRTU lacks power to control fares charged by non-member drivers - Deputy PRO NACOC declares Frank Danquah wanted over alleged narcotic offences Work on Takoradi Market Circle project set to resume within a Month — Contractor MiDA is Ghana’s gateway to global philanthropy - Mahama The day’s top stories, delivered to your inbox every morning. Source: 3News (https://3news.com/news/finance-ministry-to-write-off-120m-of-tors-legacy-debt-md)