COCOBOD signs 810 million-dollar Trade Finance Agreement
Accra, Sept. 21, GNA - The Ghana Cocoa Board has signed a trade finance facility agreement valued at 810 million dollars to be used to finance cocoa purchases for the 2006/7 crop season.
The agreement of the syndicated loan arranged by the Standard Chartered Bank and the Natexis Banque Populaires, the mandated lead arrangers, was signed in Paris on Tuesday, according to a press statement from COCOBOD made available to the Ghana News Agency on Thursday.
Amongst the syndicating banks are the Ghana International Bank plc, Natexis Banques Populaires and Standard Chartered Bank.
"This amount has become necessary because of the increase in cocoa output and its attendant working capital requirement," Mr Isaac Osei, the Chief Executive of COCOBOD, said at the signing ceremony. It is expected that COCOBOD would bring their professionalism and expertise to bear in a quick access of the funds to ensure prompt payment of cocoa farmers for their produce.
Professor Owusu Sarpong, Ghana's Ambassador to France, underscored the increased confidence of both local and international banks in the economy following the Government's prudent economic policies.
In similar vein, Mr Didier Locquet, Head of Syndication in Natexis Banques Populaires, cited the bank's confidence in Ghana Cocoa Board over the years as reason for it offering the facility for the third time.
The syndicated amount is said to be the second highest since the Ghana Cocoa Board started arranging these facilities in 1993. In 2004/05 an amount of 850 million dollars was arranged but only 550 million was drawn by the COCOBOD. The syndicated amount was agreed in view of the excellent repayment record maintained by the Ghana Cocoa Board.
