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Business & Finance | Nov 5, 2004

ADB loans Ghana Cotton Company 15 billion cedis

GNA

Tamale, Nov 5, GNA - The Agricultural Development Bank (ADB) has provided 15 billion cedis as a loan to the Ghana Cotton Company Limited (GCCL) to finance its operations for the 2004/2005 seasons.

The assistance would enable the Company to purchase this season's seed cotton and pay off accumulated salaries and emoluments of staff. Mr J.N. Banafo, General Manager of the North Central Division of the GCCL, said in a statement that outstanding bills owed to service providers, including tractor owners, fuel and spare parts dealers and input suppliers would be settled.

The statement said servicing of plants, equipment, vehicles and the importation of ginning materials and other logistics for a successful marketing and ginning season would be catered for.

It appealed to cotton farmers in northern Ghana to pick seed cotton for this season as quickly as possible and assured them of prompt payment.

The statement urged farmers, service providers and all interested parties in the cotton industry to cooperate with the management of ADB and the GCCL to ensure a successful season.

Mr. Alexis Dwamena, Branch Manager of the ADB in Tamale, said in May 2004 the ADB decided to off-load its shares to a strategic foreign investor, GhanaAmer Farms, to inject the needed working capital into the operations of the GCCL but the funding was not forthcoming. He said the ADB has therefore decided to fund the operations of the GCCL for the 2004/2005 seasons while transactions between the two bodies continue until such a time that conditions were completed for the smooth take off of the company.

He said the ADB would use the proceeds from the sales of the cotton to defray the loan.

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