More local banks are expected to take part in the syndicated loan for cocoa beans purchases for the 2017/18 crop season.
This is the indication from the Ghana COCOBOD.
The official signing ceremony for the loan agreement is scheduled for Wednesday, September 20, 2017.
This will lead to the release of 1.3 billion dollars to COCOBOD for cocoa beans purchases.
In 2016, the cocoa industry regulator secured 1.8 billion dollars from 24 syndicated banks at an interest rate of 1.5 percent.
At the time, Fidelity Bank was the only local bank involved in the deal.
The Public Affairs Manager of COCOBOD, Noah Amenyah tells Citi Business News all is set for the completion of the agreement.
“All is set with the banks. The banks have a lot of confidence in COCOBOD’s activities to take a loan and pay back and all is set for the signing of the facility to take place in Paris on the 20th of September. That day, we will ask for an amount of 1.3 billion dollars and then we will be able to use that to purchase cocoa for the 2017/18 cocoa season. We will get some local banks participating as well as some new banks also partaking in it,” he said.
Meanwhile the General Agricultural Workers Union (GAWU) has tasked COCOBOD to ensure the loan is used for its rightful purpose.
The Board Chairman of the Ghana COCOBOD; Mr. Hackman Owusu-Agyeman’s earlier claimed that the US$1.8 billion cocoa syndicated loan meant for this year’s cocoa production season had been exhausted despite outstanding payments yet to made.
But speaking to Citi Business News, the General Secretary of GAWU, Edward Kareweh said COCOBOD must reduce all leakages to ensure smooth and cost effective operations.
“Just like any other business or company, we have to ensure that we get value for money in the sense that we reduce leakage to avoid wastage and also ensure that cost is minimized and I don’t think that will be an exception to COCOBOD. More importantly, when it is going through restructuring and to make it more efficient also so that we can increase our cocoa production for the year ahead”.
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By: Pius Amihere Eduku/Jessica Ayorkor Aryee/citibusinessnews.com/Ghana