The cedi is expected to see some significant stability as well as strengthen against major international currencies in the coming weeks.
This follows the finalisation of the agreement for the 2 billion dollar cocoa syndicated loan for the 2013/2014 cocoa season.
Barring any last minute changes, partner banks to COCOBOD’s syndicated loan will on Thursday 11 September,2014 sign the agreement to release funds for the purchase of cocoa beans.
Cocobod had earlier announced it will seek 1.8 billion dollars this year for its syndicated loan. However finance minister Seth Tekper later announced this figure will be increased to 2 billion dollars.
Last year Cocobod signed a $1.2 billion syndicated loan from international banks for the 2013/14 cocoa crop purchases as against $1.5 billion for 2012/13. The credit facility between Cocobod and a consortium of international and local banks was led by French lender Societe General.
The Cocobod syndicated loan is used to purchase cocoa beans from farmers. Seth Tekper says the increase is due to Cocobod’s increase in expenditure.
‘The increase is on account of expected increase in output as well as expenditure’ Government has indicated the funds from the syndicated loan, the Eurobond among others will be the life line to salvaging the free falling cedi.