Bank of Ghana Accused of Directing Banks to Roll Over COCOBOD Investors’ Bonds On Their Blind Side

Bank of Ghana Accused of Directing Banks to Roll Over COCOBOD Investors’ Bonds On Their Blind Side

  • The Bank of Ghana is receiving flak for allegedly directing commercial banks to take back money paid to investors who bought COCOBOD bonds
  • The bonds matured on Thursday, January 19, 2023 and monies were paid in investors' accounts accordingly
  • However, on Friday, the banks rolled over the cash unilaterally, explaining that the central bank directed them to do so

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It has emerged that the Bank of Ghana (BoG) has, without explanation, asked commercial banks to take back payments made into accounts of COCOBOD bond investors.

The banks paid the monies into the accounts of the investors on Thursday, January 19, 2023, the maturity date, but without fore notice withdrew it on Friday, January 20, 2023.

COCOBOD issued the bonds to raise the funds from investors, and was expected to mature on Thursday January 19, 2023.

Cocobod has reportedly defaulted in paying back investors' money.
The HQ of the Ghana Cocoa Board and wads of GHS5 notes. Source: UGC, Getty Images.
Source: UGC

But just 24 hours after the money hit their accounts, investors were shocked to notice that the money that dropped into their accounts had been taken back.

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Reports indicate that the banks say they had been directed by the regulator, the Bank of Ghana, to roll over the bonds without first seeking the approval of investors.

The incident has been criticised as unprofessional and bizarre.

Imani Africa’s Bright Simons tweeted on Friday that the incident has stunned the investor community.

“Ghana's under pressure Cocobod defaults on maturing debt obligations shocking capital market players. Industry insiders claim that Cocobod, the country's cocoa exporting monopoly, has been told to apply their investments in the banking sector to settle creditors,” his tweet read.

Also, an investor in the COCOBOD bonds told Joy News that himself and other investors don’t know what to make of the strange situation.

“[The] cocoa bill and matured yesterday [Thursday]. When it matured, the funds were deposited into the account and I decided to go to the bank today [Friday], when I went there today, the money had been taken out of the account,” he narrated.

Government has been accused of breaking all the rules on how to deal with investors as it tries to wriggle its way out of a self-inflicted debt crisis.

The BoG is yet to respond to the claim by the banks that it directed them to roll over the matured investments.

Christian council laments impact of debt exchange programme on church offerings

Meanwhile, YEN.com.gh has reported in a separate story that the Christian Council of Ghana has lamented the negative impact of the Domestic Debt Exchange programme on Ghanaians.

The General Secretary of the council said the programme will affect the tithes and offerings of their congregants.

Reverend Dr Cyril Fayose has thus reiterated the council’s position for the government to suspend the programme.

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Source: YEN.com.gh

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