The move comes after it secured Parliament’s approval to borrow up to $1.5 billion to aid cocoa purchases for the 2019/2020 crop season.
Ghana’s cocoa board (COCOBOD) is set to sign its annual cocoa loan syndication deal with some 24 French banks in Paris, France.
Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Mr Joseph Boahen Aidoo
Reports indicate that COCOBOB has already secured the extra $200 million from some of the banks.
The first tranche of the funds is likely to hit the Bank of Ghana’s accounts in the first week in October.
COCOBOD plans to use the funds to finance the purchases 950 000 cocoa beans.
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Five of the financial institutions expected to lead the deal are ROBO-Bank, SG Bank, MUFG, NEBBANK, NET-IXIS.
The impact of the move on the economy
The immediate impact the deal will have on the economy is that it will improve Bank of Ghana’s reverses, a situation that could give investors and currency traders some assurance about the central bank’s ability to defend the local currency.
The payment to the farmers and licensed buying companies will also improve liquidity in the banking system.
The inflow of these funds will also help stabilise the cedi in the last quarter of this year.
