Finance Minister Seth Tekper has praised the credibility of the cocoa industry regulator Ghana COCOBOD (COCOBOD).
Seth Tekper has advised other government institutions to emulate COCOBOD and take part in loan syndication like it does.
COCOBOD last Thursday raised 1.7 billion dollars through a syndicated loan for the purchase of cocoa beans for the 2014/15 cocoa season.
This attracted the lowest ever interest rate of 1.2percent.
According to Seth Tekper “COCOBOD’s, success is partially based on the fact that the repayment does not come to Ghana. Those who buy the cocoa are given an account in London and are given a portion, the escrow, for the repayment of the facility. It is these things that we have gotten an approval for to institute. I think it is the way forward.”
COCOBOD first secured funds through a syndicated loan in 1992/3 crop season and has been doing so since through a consortium of foreign banks.
Some local banks have hinted to Citi Business News that they will soon be part of the consortium of banks.
Local Bank, Royal Bank early last week told Citi Business News it has begun moves to be part of the syndication.
Meanwhile according to Seth Tekper “we will use part of the Eurobond money which is a billion dollars, to do the infrastructure fund which is another approach other countries use for financing their projects so that the markets will have confidence.”
“We have institutions like VRA, GNPC and others who can follow this project-based approach. This what we have been discussing with them to be able to raise finance to develop the country”.
By: Anim Kwaku Boadu/citifmonline.com/Ghana