A Vice President of IMANI Africa, Bright Simons has described as a ‘pipe-dream’ Ghana Cocoa Board (COCOBOD) plans to raise $3.0 billion to refinance cocoa bills.
According to him, banks and other investors should plan for significant write-offs.
COCOBOD will later this year seek $3 billion from some international and local lenders to refinance its cocoa purchases.
In a tweet, Mr. Simons said “COCOBOD finally realises that plans to raise $3 billion to refinance cocoa bills are a pipe-dream”.
According to Bloomberg, COCOBOD’s borrowing cost jumped to at least 10-year high. The yield surged to more than 10%.
Cocoa bills default: BoG, COCOBOD agree to allow banks to use COCOBOD’s deposits to pay retail customers
The Bank of Ghana, Ghana Cocoa Board (COCOBOD) and the commercial banks have agreed to allow banks to use COCOBOD’s deposits/placements at the banks to cater for retail customers who may not want a rollover of their cocoa bills.
This is coming after the BoG initially directed banks not to pay customers their maturing cocoa bills investments, following cash flow challenges facing COCOBOD.
In a statement, the Central Bank said it expects that this short-term cash flow challenges facing COCOBOD will be resolved soon to enable the cocoa regulator meet its obligations to investors.
“COCOBOD has assured us that the outlook for the 2023 crop season is good, and Cocoa purchasing are ahead of last year. We therefore expect that this short-term cash flow challenges facing Cocoa Board will be resolved soon to enable COCOBOD to meet its obligations to investors.”
- Akufo-Addo swears in 3 new members of Electoral Commission
- ECG disconnects power to Ho Airport, GRA over debt
- Fella Makafui reacts after Twitter user accuses her of ‘sleeping’ with Medikal’s ex-manager
- Overborrowing is one of Akufo-Addo’s biggest mistakes – Prof Adei
- ‘Western Togoland’: 5 secessionists handed 5 years in jail each
- Ludacris hangs out with Sarkodie in Ghana, fans speculate new music
- Ghana v Angola: Kingsley Schindler replaces injured Tariq Lamptey
- Cedi may record mixed performance to dollar this week
- GALLERY: Best pictures from Black Stars training at Accra Sports Stadium on Monday
- Putin says ties with Africa a priority to Moscow
- AFCON 2023Q: Goalpost collapses and injures Wollacott in training
- Ghana’s economy is still afloat because of Alan Kyerematen’s vision – Buaben Asamoah
- Intimidation of journalists is on the rise – Kweku Andoh Awotwi
- I have already won Ayawaso West Wuogon NDC primaries – Fred Nuamah
- Playback: One-one-on with Managing Director of ECG on PM Express
- EC has become an annex of the NPP – Sammy Gyamfi
- If you move right, you don’t need 10 shows to be okay – Kelvyn Boy
- Akufo-Addo is packing EC with known NPP members – Kofi Adams
- 3 JoyNews journalists win big at Merck Foundation 2022 Media Recognition Awards
- I want to be President to build a new Ghana –Kwaku Kobeah
- Essence of marketing is creation of strong brands – Nsarkoh
- Christiana Awuni explains why ‘slay queens’ can’t quit having body enhancement surgeries
- Spend wisely, desist from expensive borrowing – GSE boss to government
- GOIL supports Appiatse Disaster Fund
- Headmasters can’t stop students from reporting to school over prospectus – Education Minister tells parents