The Ghana Cocoa Board (COCOBOD) has addressed allegations of repeated loan defaults, providing clarity on its financial obligations and repayment status.
As of December 31, 2022, COCOBOD’s total debt to the Bank of Ghana was reported at GH¢8.24 billion.
This debt includes a GH¢1.99 billion loan facility with a 10-year term and an overdrawn Cocoa Bills Retirement Account totaling GH¢6.86 billion.
COCOBOD clarified that the GH¢1.99 billion loan, secured in 2013, was meant to cover outstanding cocoa bills from the 2010/2011 season. The loan included a moratorium until 2018 due to cash flow issues worsened by low cocoa prices during the COVID-19 pandemic.
Although there have been delays in repaying the principal, COCOBOD has consistently met interest payments and has set up a revised repayment plan to start in October 2024. The Board firmly denied any default on this loan.
For the overdrawn Cocoa Bills Retirement Account, COCOBOD attributed the deficit to non-marketable cocoa bills from the 2016/2017 season, which were crucial for maintaining cocoa production amid falling international prices and changing agricultural trends.
These bills were rolled over at elevated interest rates due to prevailing economic conditions.
During the 2023 Domestic Debt Exchange Program, the government assumed a substantial portion of this debt, providing COCOBOD with a 50% discount. The remaining debt balance is still noted but does not reflect the initial amount claimed.
COCOBOD’s Public Affairs Department emphasizes that the Board has not defaulted on its commitments and is managing its debt obligations responsibly.
Read full response in the statement below: