The Ghana Cocoa Board (COCOBOD) has signed a $1.8billion cocoa syndicated loan agreement in Frankfurt, Germany, for the 2016/2017 cocoa crop year.

The facility will go into the purchase of cocoa beans, pay bonuses and take care of other operations in the cocoa sector.

Per the agreement, Ghana is entitled to an extra $200 million from the syndicated banks if the cocoa crop performs better and requires further funds.

It has a four-month moratorium and seven months repayment period which starts in February, 2017 and will be completed in August 2017.

The facility, oversubscribed by 640 million dollars this season, is also the 24th since its inception in 1992/1993 crop year.

A total of 24 banks were involved in this year’s facility with lead arrangers being eight - Deutsche Bank AG, Natixis, Nedbank Limited of South Africa, Rabobank, Standard Chartered Bank, SocieteGenerale (SG) - while the Bank of Tokyo, Mitsubishi UFJ Ltd and DZ Bank were co-arrangers.

Signing the agreement, the Chief Executive of COCOBOD, Dr Stephen Opuni, indicated that the target for the 2016/2017 cocoa season is 850 to 900 thousand metric tonnes.

“We are confident of achieving our production target of 850,000-900,000 metric tonnes during the 2016/2017 cocoa season which begins in October 2016,” he stated.

He, however, decried the impact of the extensive harmattan weather which affected crop production for the 2015/2016 crop season.

“We must admit that our production target for 2015/2016 cocoa season has been adversely affected by the severe and prolonged dry weather conditions that lasted from December 2015 to March 2016”.

Meanwhile, Dr. Opuni is confident the country could add at least 500,000 metric tonnes of cocoa in the next 10 years following some improvements such as the provision of seedlings to farmers in the sector.

The Ghanaian delegation present at the ceremony included the CEO of the Ghana Cocoa Board, Dr. Stephen Opuni; Deputy Finance Minister, Cassiel Ato Forson, Ghana’s Ambassador to Germany, Akua Sena Dansoa as well as other officials.