Eight banks to pay outstanding liability of CASHPRO
Accra (Greater Accra) 10 November 2001 - The government has directed eight banks to pay 36.1 billion cedis including an interest of 5.8 billion cedis being outstanding liability guaranteed for CASHPRO, a major cocoa purchaser as seed fund to support its 2000/2001 cocoa purchases.
To reduce the effect of the financial burden on the banks, however, COCOBOD is considering restructuring the debt and the Bank of Ghana is mediating a debt settlement arrangement.
Yaw Osafo-Maafo, Minister of Finance said this in answer to a question posed by Mr Kinston Akomeng Kissi, NPP- Akwatia as to the financial implications of the CASHPRO financial crisis on the national economy.
The Minister said at the beginning of the main crop season, CASHPRO like most Licensed Buying Companies (LBC's) applied for and was granted seed fund advances amounting to 93.0 billion cedis by COCOBOD.
He such seed fund advances were normally recovered during the course of the season when cocoa was delivered to COCOBOD and the Cocoa Marketing Company.
Mr Osafo-Maafo said that at the close of the season, CASHPRO was not able to deliver cocoa to cover the value of 30.3 billion cedis with outstanding interest of 5.8 billion cedis.
He said the undelivered cocoa was over 9,300 metric tonnes, which constitutes approximately 2.5 per cent of total 2000/2001 main crop purchases and a third of what CASHPRO should have purchased and delivered to COCOBOD with the seed fund released to it during the season.
Mr Osafo-Maafo said CASHPRO was the second largest purchaser of cocoa after the Produce Buying Company in the internal market in the 2000/2001 main crop season and accounted for 10.7 per cent of the market share. The guaranteeing banks have been notified of the shortfall and arrangements are being made to enable them settle it, he said.
Mr Osafo-Maafo gave the assurance that the absence of CASHPRO from the cocoa purchasing system in the current season has not had any adverse repercussions.
The Minister said indications are that PBC has increased its market share while all the other companies have also increased their purchases leading to the expansion of the network of cocoa purchasing.
He said further to this, at November 6, 2001, COCOBOD had released 376.5 billion cedis as seed funds to LBCs all supported with bank guarantees.
Mr Osafo-Maafo said within the next week, an additional 110 billion cedis seed fund would be released bringing the total to 486.5 billion cedis.
Another 13.6 billion cedis has also been released as re-financing for 3000 metric tonnes of cocoa delivered at the end of the third week for purchases.
Other contributors were Mr Moses Aduko Asaga, NDC- Nabdam, Mr Seidu Paakuna Adamu, NDC - Bibiani and Mr Steve Akorli, NDC - Ho East.
GRi.../
Send your comments to viewpoint@ghanareview.com
Accra (Greater Accra) 10 November 2001 - The Ghana Stock Exchange had a breather on Friday with the GSE All-Share Index, the market indicator, pushing up 4.91 points, but bearish sentiments still persisted.
The index closed up at 961.52 points to reverse the 4.47 points loss in mid-week trading on Wednesday.
Generally the market was dull, although shares that changed hands went up to close at 83,400 shares as against 31,400 shares on Wednesday.
There were three price changes. Enterprise Insurance Company was up four cedis at 3,005 cedis, Ghana Breweries Limited regained the 300 cedis it lost in mid-week at 1,300 cedis and Ghana Commercial Bank gained five cedis at 1,555 cedis. Market capitalisation went up to close at 3,914.83 billion cedis compared to 3,905.31 billion cedis at the previous close.
Below are the closing prices of the listed equities in cedis:
ABL 320
AGC 18,800
ALW 4,300
BAT 627
CFAO 60
EIC 3,005 +4
FML 950
GBL 1,300 +300
GCB 1,555 +5
GGL 900
HFC 952
MGL 241
MLC 145
MOGL 18,001
PAF 800
PBC 450
PZ 1,005
SCB 20,500
SPPC 340
SSB 2,300
UNIL 2,300
CMLT 430
GNA
GRi…/
Send your comments to viewpoint@ghanareview.com
Accra (Greater Accra) 10 November 2001 - Below are extreme prices of some selected commodities at wholesale prices made available to the Ghana News Agency and United Parcel Service for the week ending October 27, 2001:
Commodity Unit of sale Maximum cedis Place Minimum cedis Place
MAIZE 100kg Bag 140,000 Koforidua 80,000 Sunyani
RICE 100Kg Bag 380,000 Sekondi 200,000 Sunyani
MILLET 93Kg Bag 250,000 Koforidua 183,000 Mankessim
SORGHUM 109Kg Bag 280,000 Koforidua 160,000 Tamale
CASSAVA 91Kg Bag 160,000 Koforidua 30,000 Sunyani
YAM (WHITE) 100 AV. TUB 400,000 Sekondi 225,000 Kumasi
PLANTAIN (APENTU)
AV. BUNCH 22,000 Tamale 9,000 Kumasi
PLANTAIN (APEM) AV. BUNCH
28,000 Koforidua 13,500 Kumasi
PALM OIL 18 LTR /4 GAL. 00,000 Tamale 70,000 Cape Coast
TOMATOES 52Kg Crate 157,000 Accra 50,000 Tamale
COWPEA 82Kg Bag 380,000 Sekondi 235,000 Kumasi
GROUNDNUT (RED) 109Kg Bag;
300,000 Sekondi 170,000 Tamale
SMOKED HERRINGS 100 Singles
55,000 Ho 35,000 Sekondi
GRi…/
Send your comments to viewpoint@ghanareview.com