The Ghana Cocoa Board (COCOBOD) has strongly denied allegations that it was turned down by international banks in its attempt to secure a $1.5 billion loan for the 2024/2025 cocoa crop season.
These allegations were made by Minority Leader Cassiel Ato Forson, who claimed that the loan request was rejected due to COCOBOD’s poor financial standing and the reported decline in the cocoa sector under its current management.
In a statement issued on Friday, August 22, COCOBOD countered these claims, stating that syndicated banks had, in fact, submitted term sheets in response to its earlier Request for Proposals (RFP) for consideration. COCOBOD described the Minority’s assertions as “false.”
COCOBOD clarified that ongoing discussions with financial institutions are part of the standard process for such transactions and emphasized that there is no indication of a lack of confidence in its creditworthiness.
“The assertion by the Minority Caucus that international banks have rejected the Ghana Cocoa Board’s request and that COCOBOD was ‘chased away’ from the market is false. Syndicated banks submitted term sheets in response to COCOBOD’s earlier Request for Proposals (RFP) for consideration.
“Indeed, despite our plans to gradually reduce reliance on syndicated transactions, we still have existing commitments that require fulfillment through the syndicated process. These discussions with financial institutions are part of this process, and nothing indicates to us a lack of confidence in COCOBOD’s creditworthiness from these financial institutions.”
COCOBOD also criticized the Minority for releasing a press statement that contained what it described as “falsehoods, inaccuracies, and misrepresentations” regarding the current state of the cocoa sector and COCOBOD’s shift away from syndicated external borrowing.
The board firmly denied the Minority’s claim that its decision to seek funding domestically was a ‘face-saving’ measure to conceal financial difficulties, calling this assertion “categorically untrue.”
“The Minority’s claim that COCOBOD’s decision to source funding domestically is a ‘face-saving’ measure to hide its financial difficulties is categorically untrue.”
