COCOBOD gets $1.7 billion for cocoa

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ENEMIES OF PROGRESS 11 years ago

NPP WANTS TO SABOTAGE YOU AND GHANA AND EVERYTHING NDC WANTS TO DO FOR GHANA....PULL HIM DOWN MENTALIT Y IS NPP's MANTRA...NPP SHAAAAAME!!! ONE DAY ONE DAY-THE TRUTH WILL OUT!!!!

NPP WANTS TO SABOTAGE YOU AND GHANA AND EVERYTHING NDC WANTS TO DO FOR GHANA....PULL HIM DOWN MENTALIT Y IS NPP's MANTRA...NPP SHAAAAAME!!! ONE DAY ONE DAY-THE TRUTH WILL OUT!!!!
C.Stephen Sackey 11 years ago

Maybe I am dense after all, 'cose I don't get this and never would.

A local company purchases a local product for export. The transaction is denominated in the local currency and payable in that currency.

Question ...
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Maybe I am dense after all, 'cose I don't get this and never would.

A local company purchases a local product for export. The transaction is denominated in the local currency and payable in that currency.

Question, why is the local company getting a loan in a foreign currency to pay for the purchase which is payable in the local currency.

This is what I believe the deal is.All the loan syndicators get a cut - in fees, of course, for putting the deal together,turns around and buy the notes with it's great yields (spreads).Financially the profit is whopping and risk-free after all the loan is collaterized by the future cocoa sales.

Again, remind me!