GNPC To Finalise $700m Loan Deal in May

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The Ghana National Petroleum Corporation (GNPC) Has Told Citi Business News It Is Likely To Finalize Its Move To Borrow Cash To Finance Its Operations In Three Weeks.

The state owned Oil Company last year announced its intention to borrow 700 million dollars to fund some of its operations. Its move to contract the loan without seeking parliamentary approval led to it being hurled to court by three Members of Parliament, Dr Anthony Akoto Osei (Old Tafo), Samuel Atta Akyea (Abuakwa South) and Dr Matthew Opoku Prempeh (Manhyia South).

The suit was however thrown out.

But the GNPC says it may borrow less than half of the 700 million dollars because of the drop in oil prices.

The original loan deal last year Citi Business News has learnt was based on oil prices of $110 per barrel.

The prices of oil on the world market this year fell to below $50 per barrel.

According to the CEO of the company Alex Mould, it may borrow between $350 million to $400 million from banks at an interest rate of about 3.9 percent.

Part of the cash will go into ENI project which is expected to cost 7 billion dollars.

GNPC holds 15 percent in the stake.

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