The first tranche of Cocoa Syndicated Loan has finally been credited to the Bank of Ghana’s account.
Joy Business understands that the about $541 million inflows came in December 22, 2023.
This represents part of the $800 million loan.
The second tranche of about $200 million will be transferred to the Central Bank’s account in January 2024.
Details of trade facility
Parliament in November 2023 approved the Trade Facility Agreement for the Ghana Cocoa Board (COCOBOD), based on recommendation from the Finance Committee of Parliament. This allowed COCOBOD to go ahead and finalise the paperwork with participating banks.
Under the terms presented to lawmakers, COCOBOD will pay an interest of nearly 8%, which includes the one-month Secured Overnight Financing Rate (SOFR) currently around 5.3%, and a margin of 2.65%.
How the money will be utilized
Joy Business understands that the Bank of Ghana will take the dollars and transfer the cedi equivalent to COCOBOD.
The market regulator is expected to use the funds to support the purchases of cocoa beans from farmers through the license buying companies for the 2023/2024 Crop season.
Impact of Cocoa Syndication Loan on economy
The immediate impact of this inflows will be the Bank of Ghana reserves.
This may put the Central Bank in a strong position to support the cedi.
News about COCOBOD signing the deal with some banks, is already helping to stabilise the cedi.
