The first tranche of the Cocoa Syndicated Loan, amounting to about $541 million, has been credited to the Bank of Ghana’s account, according to reports.
This represents a portion of the $800 million loan, and the second tranche of approximately $200 million is expected to be transferred to the Central Bank’s account in January 2024.
The Trade Facility Agreement for the Ghana Cocoa Board (COCOBOD) was approved by Parliament in November 2023, allowing COCOBOD to finalize the paperwork with participating banks.
Under the terms of the agreement, COCOBOD will pay an interest rate of nearly 8%, including the one-month Secured Overnight Financing Rate (SOFR) and a margin of 2.65%.
The funds are expected to support the purchase of cocoa beans from farmers through license buying companies for the 2023/2024 crop season.
The inflow of funds is likely to bolster the Bank of Ghana’s reserves and strengthen its ability to support the Ghanaian cedi. News of the deal is already contributing to the stabilization of the cedi.