Following a meeting with them and the Ghana Cocoa Board, the Bank of Ghana has stated that local financial institutions have consented to roll over their investments in cocoa bills.
The central bank said that a six-month Cocoa bill having a face value of GH940.42 million matured on Thursday, January 19.
In order to raise money to pay for the maturing obligation, the BoG said it followed the customary procedures to reissue a new six-month Cocoa bill on behalf of COCOBOD. Unfortunately, the auction failed and was significantly undersubscribed, resulting in a shortfall of GH 855.42 million.
“At a meeting held on Friday, 20th January 2023 among the banks, COCOBOD and Bank of Ghana, it was agreed that all institutional investors will roll over their maturing cocoa bill for Tender 6155.
“Financial Institutions have agreed to roll over their cocoa bills investments,” it stated.
Cocobod has assured the Central Bank and the general public that the outlook for the 2023 crop season is good, and Cocoa purchasing is ahead of last year. It is expected that the short-term cash flow challenges facing Cocoa Board will be resolved soon to enable Cocobod to meet its obligations to investors.
