$1.13bn instead of approved $1.3bn Syndicated Loan shows lack of confidence in Ghana’s economy – Ato Forson

The Minority in Parliament has indicated that the $1.13billion Syndicated Loan agreement that was signed by the Ghana Cocoa Board (COCOBOD) and the Ministry of Finance instead of the $1.3bn approved by Parliament, is an indication of a lack of confidence in the Ghanaian economy.

A statement issued by Ranking Member on the Finance Committee Dr Cassiel Ato Forson said this is resulting from what they believe is the generally agreed incompetence and gross mismanagement of the Ghanaian economy.

“The Syndicated loan was signed on 3rd October 2022, for the first time in 30-years. The Syndicated Loan is typically signed before October so that the draw down is timed to the start of the season. However, this government has added late signing of syndicated loans to its plethora of failures.

“Parliament approved up to $1.3 billion syndicated loan. However, COCOBOD could only get $1.13bn. This is purely due to the lack of confidence in the Ghanaian economy resulting from the generally agreed incompetence and gross mismanagement of the
Ghanaian economy.

“With huge and unprecedented debt overhang at COCOBOD, will the syndicated loan go into purchase of cocoa and related operations? Or will LBCs suffer the same faith of borrowing very expensive loans to buy cocoa from farmers, only for COCOBOD
not to pay them, as we have seen since 2017?” the statement said.

The Ghana Cocoa Board (COCOBOD) has signed a USD1.13 billion Receivables-Backed Trade Finance Facility (Syndicated Loan) on Monday October 3.

COCOBOD received $1.13 billion instead of the $1.3 billion as approved by Parliament.

This agreement is to purchase cocoa and finance other industry costs within the 2022/2023 crop year.

The Chief Executive of COCOBOD, Joseph Boahen Aidoo, said during the signing ceremony that despite the challenges facing the cocoa sector, brought on by the global financial difficulties, the sector has once again shown leadership.

He assured the lenders of the effective and efficient use of the funds.

The Minister for Finance, Ken Ofori-Atta, also said the signing puts the nation’s finances in the right landing zone and gives impetus for optimism in the Ghanaian economy.