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Parliament approves loan facility for COCOBOD for 2016/2017 crop season

Parliament has amidst heated debates approved a $2 billion receivables-backed trade finance facility between the Ghana Cocoa Board and a consortium of banks and financial institutions.

Presenting the report of the Finance Committee for the approval of the loan, the Chairman of the Committee James Avedzi said the Trade Facility is to enable COCOBOD to raise adequate funds to purchase cocoa beans from farmers through license buying companies for the 2016/2017 crop season.

He explained that the sourcing of the facility also provides the nation the opportunity to demonstrate its good track record on borrowing from the International Financial Market.

GBC’s Dominic Hlordzi and Augustus Acquaye report that the House also approved a stamp duty waiver amounting to $10 million on the Receivable-backed Trade Financial Facility.

The government of Ghana is to provide guarantee for the $2 billion facility.

The arrangement involves a consortium of several international and local banks and financial institutions in arranging the credit facility to purchase an estimated 900,000 metric tons of cocoa beans for the 2016/2017 crop season.

The Ranking Member on the Finance Committee, Dr Anthony Akoto Osei touched on the utilization of last year’s facility by the COCOBOD.

Haruna Iddrisu, MP for Tamale South also associated himself with the motion on the facility.

The MP for Subin and former Boss of COCOBOD, Isaac Osei was not enthused about spending money from COCOBOD on roads.

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