The payment of matured investments in cocoa bills by the government has fallen behind schedule.
The 940.42 million dollars six-month Cocoa bill matured on January 19, 2023, but the BoG admitted defaulting, explaining that despite following the customary procedures to reissue on behalf of COCOBOD to raise money to cover the maturing obligation, the auction sadly failed and was “severely undersubscribed resulting in a shortfall of GH855.42million.”
According to accounts, the government renewed the matured interests without the investors’ permission, with the banks being told to carry out the renewal.
However, the Bank of Ghana (BoG) emphasized in a statement that retail customers who were not interested in a rollover of their cocoa bills would still have their bills paid using COCOBOD’s deposits.
Following the default on the cocoa bills, the Bank of Ghana, the Ghana Cocoa Board, and the commercial banks came to this agreement.
In a statement, the Bank of Ghana stated. “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,”
“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”.
it further mentioned. “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”,