Parliament has approved a $1.8 billion loan facility for the Ghana Cocoa Board (COCOBOD) for the purchase of cocoa beans for the next crop season.
COCOBOD is expected to use the funds raised from about seven banks to purchase about 900 thousand metric tonnes of cocoa beans.
Deputy Minister of Finance, Ato Forson says inflows from the trade facility will go a long way to help improve the Bank of Ghana’s reserves which would then help stabilize the cedi.
Standard Chartered Bank is expected to act as the lead arranger for the facility, whilst banks like Barclays Bank PLC, Commerzbank, Aktiengesellschaft , Deutsche Bank AG, Natixis Standard Bank Group and Sumitomo-Mitsui Banking corporation will act as supporting banks.
The sourcing of the facility also provides the nation with the opportunity to demonstrate its good track record on borrowing from the international finance market.
Presenting the report of the Finance Committee of Parliament on the facility, the Chairman of the committee, Mr James Klutse Avedzi, the loan would enable COCOBOD get the needed funds to purchase cocoa for the season.
“Further, the approval of the waiver will also allow COCOBOD to use the entire syndicated facility for cocoa purchases and other related uses,” he said.
Credit: myjoyonline