Parliament approves $300m cocoa bills refinancing loan
Parliament has approved an agreement between the Ghana Cocoa Board (COCOBOD) and seven financial institutions for a $300 million loan facility for the refinancing of cocoa bills.
Advertisement
The financial institutions are the Bank of Tokyo-Mitsubishi UFJ Limited, Credit Agricole Corporate and Investment Bank, DZ Bank AG Deutsche Zentral-Genossenschaftbank, Natixis, Nedbank Capital, Standard Bank and Société General S.A.
The House also approved the request for a waiver of stamp duties amounting to $3 million on the loan.
The Minority, however, kicked against the loan, arguing, among other things, that there was no justification for it and that it did not believe that it would be used for the intended purpose.
As a result, they did not vote for the approval of the loan.
Minority
The report of the Finance Committee of Parliament on the loan agreement was laid in the House last Tuesday by the Chairman of the committee, Mr James Klutse Avedzi, but immediately he concluded his remarks on the agreement, the Minority made its position clear.
The Deputy Ranking Member of the Cocoa, Food and Agriculture Committee, Dr Owusu-Afriyie Akoto, said the government had earlier sought the approval of the House for a $1.7 million loan to purchase 850,000 metric tonnes of cocoa.
He said the government ended up purchasing only 700,000 tonnes.
Other Trending Stories
Approval
In his view, some of the money approved should be left in the government's kitty and could be used for the refinancing of cocoa bills.
He noted that the government, in his opinion, was not asking for the approval of the loan for the refinancing of cocoa bills as stated but for some other endeavour.
The Minority Leader, Mr Osei Kyei-Mensah-Bonsu, also argued vehemently against the approval and made it clear that the Minority would not support the approval.
When the time came for the approval of the loan however, some members raised the issue of quorum and the Second Deputy Speaker, Mr Joe Ghartey, deferred the voting yesterday.
At the sitting of the House yesterday, the members of the Majority approved the loan with a thunderous "Aye", while the Minority kept mute.