Minority’s allegation that COCOBOD was ‘chased away’ from the market is false

The Ghana Cocoa Board (COCOBOD) has clarified that the recent move to stop accepting syndicated loans from international banks is a part of a larger plan to turn to local financing of the cocoa business.

The board insisted that the change was intended to maximize the economic advantages of cocoa while providing Ghanaian cocoa producers with more value.

The Chief Executive of COCOBOD, Joseph Aidoo, refuted claims made by the Minority in parliament that the organization had been expelled from the global syndicated credit market in a news release, claiming that the claims were inaccurate and misleading.

“The assertion by the Minority Caucus that the International Banks have rejected the

The claim made by the Ghana Cocoa Board that COCOBOD was “chased away” from the market is untrue. Syndicated banks responded to COCOBOD’s previous Request for Proposals (RFP) for consideration by submitting term sheets, which is why this is the case.

“For the avoidance of doubt, the proposed decision to explore non-syndicated funding is part of a broader strategy to diversify our sources of funding, making the Board more self-financing and sustainable in the medium to long term, deriving more value for farmers and retaining more value within the Ghanaian economy,” the statement read in part.

Minority Leader Dr. Cassiel Ato-Forson said in a statement on Wednesday that COCOBOD’s classification as ineligible for credit was the reason behind the policy adjustment to stop borrowing on the foreign market.

“The announcement by COCOBOD that it has taken a bold decision not to borrow from foreign banks to finance cocoa purchases after 32 years is false, unmeritorious, contrived, and face-saving,” Dr. Ato Forson had said.

COCOBOD refuted the allegation calling it “categorically untrue”.

The board further stated the new path it had charted was a “forward-thinking policy” which would “sustain and grow the cocoa industry”.

Read the full statement from COCOBOD below:

Source: Ghanatodayonline.com