(Ecofin Agency) - In Cote d’Ivoire, banks are presently unwilling to increase loans to local cocoa exporters who were forced to turn to them after producer price rose by 10% for the new season.

“The loans we contracted are not enough to pay volumes we bought from the coffee-cocoa council (CCC) because the producer price increase took us by surprise. That’s why we are trying to get more from banks,” chief financial officer of a small exporter told Reuters, asking not to be named.

Banks in response to exporters’ plea said they ask for initial loan to be increased 10%. It will be difficult to satisfy everyone, said the director of local subsidiary of BNP Paribas while an executive of Société Générale Cote d’Ivoire declared: “We have already taken a big risk by lending them money and we don’t want to expose ourselves more because they buy small volumes”.

In this context, exporters believe risk of failing to meet their commitment is greater.

Aaron Akinocho