US$1.3 billion loan request to purchase cocoa tabled before Parliament

The Government of Ghana is requesting for a Parliamentary approval to loan US$1.3 billion to finance the purchase of cocoa for the 2020/2021 crop season.

This follows the regulator of cocoa, Ghana Cocoa Board (COCOBOD) given the strongest assurance that its annual cocoa syndication loan facility will go ahead despite the COVID-19 pandemic.

The request which was made on Monday, August 10, before the Finance Committee in the House also entails a presentation of an additional GH¢6.5 million in tax waivers.

Consequently, after the request was made before the committee, it is expected that members are to debate and approve the request prior to their recess later this week.

Meanwhile, government in 2019 signed the US$1.3 billion loan for the purchase of some 850,000 metric tonnes of cocoa beans from farmers for 2019/2020 crop season.

The amount was a cocoa syndicated loan signed between COCOBOD and some international financial institutions.

Earlier in 2019 crop season, COCOBOD increased the producer price of cocoa beans from GH¢7,640 to GH¢8,240 per tonne.

The African Development Bank (AfDB) in 2019, however, granted a US$600 million loan facility geared towards the development of Ghana’s cocoa sector.

Source: www.ghanaweb.com