More than 90% of holders of Ghana’s Cocoa Bills have eagerly embraced the debt exchange offer made by COCOBOD through the government.
Making the assertion, Dr. Mohammed Amin Adams, the Minister of State at the Ministry of Finance, lauded this achievement as a resounding success for the nation.
The move, he noted, is poised to infuse the state coffers with much-needed liquidity, earmarked for financing future cocoa purchases, thereby amplifying the country’s economic impetus.
Announcing this significant accomplishment at the prestigious International Taxation Conference, hosted by the esteemed Chartered Institute of Taxation, Dr. Adams illuminated the government’s forward-looking strategy.
A staggering ¢8.0 billion, an impressive sum, was put on the exchange table to refinance cocoa procurements for the upcoming season. This strategic maneuver by the Ghana Cocoa Board (COCOBOD) to garner additional funding has yielded triumph, with the Minister heralding the initial results as emblematic of impending recoveries within the domestic market.
“We have been able to make payments for bondholders in the new exchange and at the same time we have been extremely successful with the current tendering of more than 90% of cocoa bills of ¢7.9 billion and a dollar exchange of $809 million and detailed announcement will follow through when the settlements are done,” Dr. Adams revealed in an address marked by optimism.
The fiscal resonance of this achievement was further underscored by the Institute of Statistical, Social and Economic Research’s (ISSER) distinguished Economist, Professor Charles Ackah.
The seasoned economist advocated for a pronounced emphasis on export-centric commodities, which he emphasized would facilitate substantial foreign exchange gains, thus buoying the nation’s fiscal health.
In the backdrop of this year’s tax conference theme, “Taxation and economic development; a review of Ghana’s tax policies,” the symposium’s thematic resonance poignantly underscored the nation’s ongoing efforts to reevaluate and optimize its taxation strategies.
Ghana’s fiscal collection, comparatively modest when measured against global benchmarks, finds itself at a crossroads; a juncture that demands calibrated fiscal finesse for sustainable growth and development.