Accra: Government has announced plans to convert GHS5.8 billion in legacy debt owed by the Ghana Cocoa Board (COCOBOD) to the Bank of Ghana and the Ministry of Finance as part of a broad reform agenda aimed at stabilising the cocoa sector. The announcement was made by the Minister of Finance, Dr Cassiel Ato Forson, during a press briefing outlining government's reform agenda for the sector.
According to Ghana Web, Dr Ato Forson stated that the proposed restructuring is intended to address long-standing financial pressures facing the cocoa regulator. He emphasized that the government will seek parliamentary approval to restructure approximately GHS5.8 billion in legacy debt owed by COCOBOD to the Bank of Ghana and the Ministry of Finance. This measure is part of efforts to restore stability to the cocoa sector.
Dr Ato Forson added that the debt restructuring is expected to ease financial strain on COCOBOD, improve investor confidence, and create fiscal space for critical reforms within the sector. The debt conversion is aimed at restoring positive equity and boosting confidence in both the international and local markets to support the operations of COCOBOD.
Additionally, Dr Ato Forson noted that Cabinet has also directed the immediate transfer of GHS4.35 billion in cocoa road liabilities from COCOBOD to the Ministry of Roads and Highways and the Ministry of Finance.