The Ghana Cocoa Board (COCOBOD) has issued a response to the allegation of consistently defaulting on its debt of GH₵ 8,241,883,644.

According to COCOBOD, as of 2022, the organization had an outstanding debt of GHS8.24 billion to the Bank of Ghana.

COCOBOD clarified that, however, its current outstanding debt to the Bank of Ghana stands at GHS1.99 billion, which is part of a 10-year loan facility.

“This was a facility arranged between COCOBOD and the Bank of Ghana in 2013 arising out of cumulative cocoa bills from 2010/2011 that was converted into a term loan with an extended moratorium to 2018. COCOBOD has so far paid a total of GH₵ 615,201,131.68 out of the principal amount, bringing the outstanding balance to GH₵ 1,384,202,546”.
“COCOBOD sought an extension of the principal repayment plan due to cash flow challenges resulting from low terminal prices of cocoa during the COVID-19 pandemic”.
The Ghana Cocoa Board (COCOBOD)

COCOBOD clarified that it has reached an agreement with the Bank of Ghana to extend the loan repayment period, thereby avoiding any default on the facility and ensuring a smooth repayment process.

COCOBOD emphasized that it has consistently met its interest payment obligations on the loan facility, even during the period when it was requesting an extension on the principal repayment.

COCOBOD confirmed that, as per the updated repayment schedule, the organization will initiate principal debt repayment on the facility in October 2024, marking a significant milestone in its loan obligations.

COCOBOD categorically denied the allegation of consistent default on the 10-year Bank of Ghana facility, reiterating that there has been no default whatsoever, and therefore strongly refutes this claim.

COCOBOD Clarifies Cocoa Bill Retirement Account Overdraft

Moreover, the Ghana Cocoa Board explained that the GH₵ 6.857,681,098 figure pertains to non-marketable cocoa bills recorded on the Bank of Ghana’s books, shedding light on the reason behind the overdraft in the Cocoa Bill Retirement account.

COCOBOD noted that the cocoa bills were introduced in the 2016/2017 season as a response to a sharp 30% drop in global cocoa prices, aiming to support cocoa purchases and sustain producer prices, thereby ensuring the continued viability of cocoa farming.

COCOBOD highlighted that before the 2016/2017 season, the cocoa industry had experienced a significant decline in farms due to a shift in interest towards cashew production, resulting in a substantial loss of cocoa farms to cashew cultivation.

COCOBOD additionally noted that the period preceding 2016/2017 was also marked by the looming threat of a surge in illegal mining activities (galamsey), which was on the verge of escalating out of control.

Accordingly, COCOBOD emphasized that the decision to maintain the existing producer price was a prudent and strategic move in the national interest, aimed at protecting the country’s vital crop and economic mainstay, cocoa, during a period of significant challenges.

“The cocoa bills remained outstanding due to low revenue levels attributed to depressed cocoa prices on the international market during the term of the bills, making it difficult for COCOBOD to liquidate upon maturity. The cocoa bills were being rolled over at relatively high interest rates in line with prevailing macroeconomic factors resulting in the balance as of the year 2022”.
“During the Domestic Debt Exchange Program in 2023, the cocoa bills which were held by the Bank of Ghana as non-marketable debt were included in the exercise. The Government took over the debt and granted COCOBOD a 50% discount on the total amount owed whilst the remaining amount remains as a debt on the books of COCOBOD captured in our recently published Financials for 2023”.
The Ghana Cocoa Board (COCOBOD)

Therefore, COCOBOD clarified that taking into account the factors mentioned earlier, it does not have any liability or indebtedness to the Bank of Ghana in the amount of GH ₵6,857,681,098 as of the present date.