The government has failed to pay matured cocoa bill investments.
According to a statement issued by the Bank of Ghana, despite going through the normal processes to reissue on behalf of COCOBOD to raise funds to cover the maturing obligation, the auction failed and was severely “undersubscribed,” resulting in a shortfall of GH855.42 million.
They were reports that the government had rolled over the matured interests without the consent of investors.
The news further claimed that banks were directed to go ahead with the rollover.
But the BoG in its statement said “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.
“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 said.