Governor of the Bank of Ghana, Dr. Ernest Addison has hinted that the size for this year’s Cocoa Syndicated Loan will reduce to about $800 million, which is a decline to the earlier figure of $1.2 billion.
He explained that this forms part of debt sustainability measures contained in the IMF programme to restore macroeconomic conditions across the cocoa value chain.
Speaking at a joint IMF-Finance Ministry press briefing in Accra on October 6, 2023, Dr Addison confirmed that the cocoa regulator [COCOBOD] will still receive the syndicated loan facility for this year.
“I think that they’re still getting the syndicated loan this year but it's just that the size of the syndication is gone from I think $1.2 billion to $800 million,” he noted.
The development is however expected to impact on Ghana’s cocoa output for the 2023/2024 crop season.
The Cocoa Syndicated loan is to boost activities in the cocoa sector as this is one of the country’s highest export commodities.
The Ghana Cocoa Board has in recent times been saddled with a myriad of challenges including its overwhelming debt levels.
Under the current IMF bailout programme for Ghana, government restructured cocoa bills in order to achieve some stability with the debt levels.
Meanwhile, government on September 9 announced an increase in the farm-gate price for cocoa beans from GH¢800 to GH¢1,308 for the 2023/2024 crop season.
The increase represents a 63 percent hike in almost 20 years.
MA/NOQ
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