The Ghana Cocoa Board (COCOBOD) has clarified its financial obligations and repayment status following allegations of persistent loan default.
As of December 31, 2022, COCOBOD’s total debt to the Bank of Ghana was reported to be GH¢8.24 billion, comprising a GH¢1.99 billion 10-year loan facility and an overdrawn Cocoa Bills Retirement Account totaling GH¢6.86 billion.
COCOBOD detailed that the GH¢1.99 billion loan, secured in 2013, was allocated to address accumulated cocoa bills from the 2010/2011 season.
Due to cash flow difficulties exacerbated by low cocoa prices and the impacts of the COVID-19 pandemic, the loan had an extended moratorium until 2018.
While there have been delays in principal repayments, COCOBOD has consistently paid the interest and set a revised repayment schedule to commence in October 2024, categorically denying any default on this facility.
COCOBOD’s Public Affairs Department asserts that the Board has not defaulted on its financial obligations and continues to manage its debt responsibly.
COCOBOD’s overdrawn Cocoa Bills Retirement Account resulted from non-marketable cocoa bills from the 2016/2017 season, which were necessary to maintain cocoa production amid low international prices.
These bills carried high interest rates, however, the government reduced the debt by 50% during the 2023 Domestic Debt Exchange Program, so the remaining balance does not fully reflect the original amount.
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