Parliament has approved a request by the Ghana Cocoa Board (COCOBOD) to raise a total of 1.3 billion U.S. dollars through a syndicated loan facility for cocoa purchases in the 2020/2021 crop season.
The request laid by the chairman of the house finance committee Mark Asibbey-Yeboah, for the receivables-backed trade finance facility from a consortium of banks and financial institutions received unanimous approval from the house late Wednesday.
The cocoa regulator in the West African country depends on such syndicated facilities, usually at the London Inter-Bank Offered Rate (LIBOR) for its annual cocoa purchases.
Ghana produced about 812,000 metric tons of cocoa during the 2018/2019 crop season and targeted to increase production to 850,000 tons in the current season.
Ghana and La Cote d’Ivoire account for about 60 percent of annual global cocoa production. Enditem