PARLIAMENT ENDORSES USD 1.3 BILLION COCOBOD SYNDICATED LOAN

Parliament has endorsed a receivables-backed Trade Finance Facility between Ghana Cocoa Board, COCOBOD and a Consortium of Banks and Financial Institutions, for an amount of One Billion, Three Hundred Million US Dollars for the purchase of Cocoa in Ghana for the 2017/2018 Crop Season. The government of Ghana will serve as Guarantor for the facility which has an interest rate of one month Libor plus a margin of zero-point-65 percent per Annum. COCOBOD projects to purchase 850 thousand metric tonnes of cocoa beans for the 2017/2018 crop season.

 Presenting the report of the Finance Committee for approval of the loan the Chairman of the Committee Dr. Mark Assibey-Yeboah said the objective of the facility is to raise adequate Funds to enable COCOBOD to purchase cocoa beans from farmers through licensed buying companies for the 2017/2018 cocoa season and other related operations.

A Total of forty Banks have agreed to finance the syndicated loan. The first expected drawdown would be in October 2017 with an amount of 700 Million US Dollars. The Ranking member on the Finance Committee Cassiel Ato Forson seconded the motion for the approval of the loan facility saying the amount will greatly impact the economy.

Meanwhile the House also approved a request for a waiver of Stamp Duty amounting to Six Million 500 thousand US Dollars on the receivables-Backed Trade Finance Facility between Ghana Cocoa Board and the Consortium of Banks and Financial Institutions for an amount of One Billion, Three Hundred Million US Dollars for the purchase of Cocoa in Ghana for the 2017/2018 Crop Season.

Story: Dominic Hlordzie/Augustus Acquaye
GBCONLINE