In response to allegations of persistent loan default, the Ghana Cocoa Board (COCOBOD) has provided clarification on its financial responsibilities and loan repayment status.
COCOBOD states that the entire amount of debt it owed the Bank of Ghana as of December 31, 2022, was GH¢8.24 billion.
This comprises an overdraft Cocoa Bills Retirement Account totaling GH¢6.86 billion and a GHS1.99 billion 10-year loan facility.
According to COCOBOD, the GH¢1.99 billion loan was set up in 2013 with the intention of paying out the total amount of cocoa bills from the 2010–2011 season. However, because of cash flow issues brought on by the COVID-19 pandemic’s low cocoa prices, a moratorium was extended until 2018.
Although principle repayments have occasionally been delayed, COCOBOD has continuously paid interest and has set up a new repayment plan that will start in October 2024. Furthermore, the Board vehemently refuted any default on this facility.
COCOBOD stated that non-marketable cocoa bills from 2016–2017, which were required to maintain cocoa output in the face of declining global prices and fluctuating agricultural interests, were the reason for the overdraft in the Cocoa Bills Retirement Account.
Because of the state of the economy, many bills were rolled over at excessive interest rates.
But the government took over a large amount of this debt during the 2023 Domestic Debt Exchange Program, giving COCOBOD a 50% reduction. While it is still recorded, the remaining balance does not match the entire amount that was initially claimed.
According to COCOBOD’s Public Affairs Department, the Board is still appropriately managing its debt and has not fallen behind on any of its obligations.
Read full statement below:
