Ghana Airports Company seeks approval to prepare account in dollars

The Ghana Airports Company Limited (GACL) says it is seeking approval from the Ghana Revenue Authority to allow it to prepare its accounts in dollars.
Speaking to GBC  Business news Wednesday in Accra, the Managing Director, John Attafuah said this will enhance the company’s operations following fluctuation of the local currency.
He noted that,’’when loans are taken in dollars, it is used to acquire asset and as the cedis goes down, though you acquire asset, the hundred dollars taken as loan if converted will be five hundred cedis and as the cedis depreciate it may rise to six hundred cedis and even if you have not spent the money it will reflect as cost, with an increase of hundred cedis which is less profitable. But if the loan stay in dollars which of cause the law allows, they could then report realistically on their operations.’’
Though, we have not received any feedback yet from the Ghana Revenue Authority. “About 87% of our income is in dollars, all aeronautical and the remaining 15% is the non-aeronautical bit so we are effectively an offshore company.”
In relation to loan facilities, Mr. Attafuah noted that they are being paid without default. He said,the company has negotiated with lenders to reduce interest on the loan.
“We started with an interest rate of 8%, we negotiated and they brought it down to 5.5% which I think is a massive saving for us and that should make us able to breathe more easily,” he added.
Story by Maryam Hassan.