Parliament has approved a Loan Agreement between Ghana Cocoa Board (COCOBOD) and a Syndicate of Banks and Financial Institutions for an amount of 1,300,000.00 US dollars, for the purchase of cocoa for the 2017/2018 crop season.
The purpose of the facility (loan) is to raise adequate funds to enable COCOBOD purchase cocoa beans from farmers through licensed buying companies for the 2017/2018 cocoa season, and to finance other related operations.
Under the terms of the Agreement, the requirement to pay Stamp Duty, which would otherwise have amounted to US$6,500,000.00, has been waived.
Presenting a Report of the Finance Committee of Parliament, Chairman of the Committee, Hon. Mark Assibey-Yeboah (Dr.), informed the House that one of the objects of COCOBOD was to purchase, market and export cocoa and cocoa products produced in Ghana. He added that as a result of expected increases in the production of cocoa, there is the need to adequately resource COCOBOD to enable it finance the purchase of the cocoa beans.
He also said the offshore syndicated Trade Finance Facility was put in place in 1994 to enable COCOBOD secure loans to finance the purchase of cocoa beans and for other payments each year.
Hon. Assibey-Yeboah further stated that Section 32 (6) of the Stamp Duty Act, 2005 (Act 689), required loan documents to be stamped at 0.5% of the loan amount. He added that in order to ensure that the trade finance facility is used solely for the purchase of cocoa beans and related expenses, the facility is to be exempted from the payment of Stamp Duty under the Stamp duty Act, 2005 (Act 689).
