The Ghana Cocoa Board (COCOBOD) will pay more for it’s annual cocoa loan this year than it did for the US$1.8 billion it took from the international finance market last year.
Although the board is borrowing the same US$1.8 billion, the rate on the loan has risen from last year’s rate of 1.19 per cent to 1.47 per cent due to a marked increase in the libor rate.
The libor, which is the Intercontinental Exchange London Interbank Offered Rate, is a benchmark rate that some of the world’s leading banks charge each other for short-term loans.
Last year, the rate was 0.186 per cent in August and September, when the board was negotiating for the loan but rose to 0.446 per cent the same period this year, when COCOBOD opened negotiations with interested banks for fresh set of funds.
The increment in the rate was due, largely, to the Brexit, which created some anxiety in the international financial market, leading to marked increments in cost of funds.
The Public Affairs Manager of the board, Mr Noah Amenya, told the Graphic Online in Accra that this year’s loan was oversubscribed to the tune of US$2.44 billion.
He attributed the oversubscription to growing interest in the board’s activities arising from the credibility it attained over the years.
The board has since the 1992/3 cocoa season raising funds through a consortium of bank to support cocoa production