Retail customers to be paid with COCOBOD’s deposits over cocoa bills default
Retail customers not interested in a rollover of their cocoa bills would now be paid using COCOBOD’s deposits at the banks.
That’s the agreement reached among the Bank of Ghana, Ghana Cocoa Board (COCOBOD) and the commercial banks following the COCOBOD’s bills default.
It comes days after it emerged that the Central Bank had directed commercial banks to roll over the interest of the customer’s investments in cocoa bills without their consent due to financial constraints by COCOBOD.
“To reduce the cash flow challenges on retail holders of cocoa bills, the Bank of Ghana, COCOBOD and the commercial banks have agreed to allow banks to use COCOBOD’s deposits/placements held at the various banks to cater for retail customers who may not want a rollover of their cocoa bills”, the Bank of Ghana said in a statement.
A six-month Cocoa bill with face value of ¢940.42 million matured on January 19, 2023, but the BoG admitted defaulting explaining that:
“It went through the usual processes to reissue on behalf of COCOBOD a new six-month Cocoa bill to raise funds to cover the maturing obligation, but unfortunately, the auction failed and was severely undersubscribed resulting in a shortfall of GH¢855.42million”.
“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 further mentioned.