AG explains new law that prevents payment of compound interest on judgement debt

A law to prohibit the payment of compound interest by the state in transactions entered into on her behalf by public officers has been passed by Parliament and assented to by President Akufo-Addo.

According to the Attorney-General, the law seeks to curb the tendency on the part of public officers to enter into contracts with high rates of interest especially compound interest which has resulted in huge financial losses to the state.

This, Mr Dame said, was motivated by observations made in various actions in which he defended the state in numerous judgement debt cases involving substantial amounts.

President assents to contracts Bill – Act prohibits compound interest payable by state