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Following revelations that the Bank of Ghana (BoG) had signed a memorandum of understanding (MoU) for a ¢53 billion bailout under the previous Ernest Addison-led administration, Finance Minister Dr. Cassiel Ato Forson has strongly stated that the government will not use taxpayer funds to recapitalize the BoG.
Dr. Forson emphasized the extreme financial strain on the BoG and ruled out any government action that would further burden taxpayers in an interview with Joy News on Tuesday, March 11, following the presentation of the 2025 Budget Statement to Parliament.
“On the back of the report that showed the ¢60 billion hole, remember, in my previous life as the Minority Leader, I kept saying that the Bank of Ghana had generated so much debt, so much deficit. As a result, their balance sheet is not healthy, and they have generated negative equity,” he said.
Dr. Forson underlined that the BoG must come up with internal solutions instead of depending on public finances, even in light of its financial problems.
“Apparently, the previous administration in the Bank of Ghana had signed an MoU for the Government of Ghana, or the taxpayer, to recapitalise the central bank with ¢53 billion. I’ve asked the Bank of Ghana to look within, cut expenditure, because the taxpayer cannot afford ¢53 billion,” he stated.
He cited BoG’s recent assets and expenses as subject matter for financial restructuring and highlighted possible cost-cutting strategies.
“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,” he stressed.
Dr. Forson further cautioned that providing taxpayers with such a large amount of money to recapitalize BoG would deprive them of vital public services.
“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 afford that. And so the central bank must look within,” he said.
In order to raise money, he also asked BoG to think about selling off non-essential assets.
Source: Ghanatodayonline.com
