2015 Budget Highlights: Gov't considers second line cocoa bonds

Government is considering the possibility of a second line of longer term Cocoa Bonds by the Ghana Cocoa Board (COCOBOD) to fund its long term capital and infrastructure needs, Seth Terkper, Finance Minister has said.

Presenting the 2015 Budget to Parliament on Wednesday, the Finance Minister said the initiative forms part of the new debt management strategy that had been approved by Parliament.

Cocobod in September announced that it has signed a US$1.2billion syndicated loan from international banks for 2013/14 cocoa crop purchases as against US$1.5billion for 2012/13.

The credit facility between Cocobod and a consortium of international and local banks, led by French lender Societe General, will enable Cocobod to raise funds to purchase 830,000 tonnes of cocoa from farmers for the season.

Ghana is the world's second-largest cocoa exporter after Ivory Coast, and Cocobod aims to raise production to an average of 1 million tonnes annually from 800,000 tonnes through improved farming methods and better incentives.