Information reaching norvanreports indicate the Bank of Ghana (BoG) has received the first tranche of the Cocoa Syndicated Loan.
The first tranche of the loan syndication valued to be $650 million was received by the Central Bank on October 20, 2020.
The second tranche of the loan facility also valued at $650 million, is expected to hit the accounts of the BoG in November this year.
A significant portion of the loan will be used by the COCOBOD to finance purchases of cocoa beans as it targets 900,000 metric tonnes of cocoa production in the next crop season.
In addition to financing purchases of cocoa beans, COCOBOD intends to use parts of the loan to undertake some critical projects.
Meanwhile, the syndication loan is expected to help stabilize the cedi as it’s addition to the Central Bank’s reserves will enhance cedi stabilization efforts by the Bank.
It will also increase BoG’s total reserves to a little over $9 billion by the end of October.
COCOBOD last month signed a $1.3 billion syndicated loan agreement with local and international banks for the purchase of cocoa for the 2020/21 season.
It was the first time that the agreement had to be signed virtually with 24 international banks and four local banks because of the coronavirus pandemic.
The International banks include Amro Bank, Bank of China Limited in London, Standard Chartered Bank, Industrial, and Commercial Bank of China and Ghana International Bank, Cooperative Rabobank, UA, and Societe General.
The local banks are Ecobank Ghana Limited, Societe Generale Ghana Limited, Absa Ghana Limited and Stanbic Bank Ghana Limited.
