The Finance Minister has firmly rejected the idea of using taxpayer funds to bail out the Bank of Ghana (BoG) after the central bank recorded a ¢60 billion deficit, resulting in a negative equity position.
Dr. Cassiel Ato Forson speaking on Joy News’ PM Express on Tuesday, March 11, following the presentation of the 2025 Budget Statement to Parliament, insisted that BoG must find internal solutions rather than relying on public funds for a ¢53 billion recapitalisation.
“On the back of the report that showed that the ¢60 billion hole, remember, in my previous life as the Minority Leader, I kept saying that Bank of Ghana had generated so much debt, so much—I mean deficit. As a result, their balance sheet is not healthy, and they have generated negative equity,” Dr. Forson stated.
He revealed that the previous administration at BoG had already signed a Memorandum of Understanding (MoU) committing the Government of Ghana to provide ¢53 billion for the bank’s recapitalisation. However, he questioned the feasibility of such a move.
“Do you have the money? I’ve asked the Bank of Ghana to look within, cut expenditure because the taxpayer cannot afford ¢53 billion. I’ve communicated that to the government, but they already have an agreement with government. But they can look within. They can look within.”
Dr. Forson strongly argued that using public funds for BoG’s bailout would mean depriving Ghanaians of critical infrastructure and social services.
[embedded content]“Giving ¢53 billion to the central bank will simply mean that we will have to deny the taxpayer some public good, like roads, like schools, like hospitals. Is that what we want? Can we afford it? At this stage, the answer is no. We cannot be able to afford that.”
The Finance Minister advised the Bank of Ghana to explore cost-cutting measures and asset sales to finance its recapitalisation.
“First of all, they have to look within. You know, you’ve seen their new Head Office, a very big building. They have a choice—a choice to sell and lease back if they want. They have to look within and cut expenditure and reduce events. The taxpayer cannot afford ¢53 billion.”
Dr. Forson further suggested that the central bank should consider selling off non-essential assets such as guest houses to raise funds.
“They have hotels like guest houses and others. Why are they in guest houses? They should sell some of them and use the money to recapitalise. The taxpayer cannot be used as a punching bag.”
Despite his strong stance, the Finance Minister signaled openness to negotiations, provided BoG takes the lead in addressing its financial issues.
“Luckily for me, the Governor is on board, and I expect the Governor to look within and cut expenditure to reflect the needs of the bank. If the central bank is able to come to me with a reasonable offer, we can have a conversation. Okay, but it must start from them.”
Dr. Forson also suggested an alternative approach where BoG could gradually rebuild its capital base.
“I have also said that they may have to consider when I went back their profit over the next 10 years to recapitalise. That can also be done.”
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