Finance Minister, Dr. Cassiel Ato Forson, has ruled out using taxpayer funds to bail out the Bank of Ghana (BoG), following revelations of a memorandum of understanding (MoU) signed under the previous administration that proposed a ¢53 billion government-backed recapitalisation of the central bank.
Speaking to Joy News on March 11, shortly after presenting the 2025 Budget to Parliament, Dr. Forson acknowledged the severe financial strain at BoG, including a reported ¢60 billion deficit, but stressed that the government would not intervene at the taxpayers’ expense.
“The taxpayer cannot afford ¢53 billion,” Dr. Forson said, citing BoG’s negative equity and mounting debt. “The central bank must look internally for solutions rather than relying on the government for a bailout.”
Dr. Forson, who previously served as Minority Leader, reiterated that the BoG’s financial troubles were longstanding and resulted from excessive debt accumulation. Despite this, he dismissed the idea of a government-funded recapitalisation, emphasising that such an approach would further strain public finances.
He suggested that BoG should focus on internal cost-cutting measures, including reviewing its recent expenditures and assets, such as its new headquarters. “They have a choice—to sell and lease back their headquarters if necessary,” Dr. Forson said. “They must reduce expenses and eliminate non-essential activities. The taxpayer simply cannot bear the burden.”
The Finance Minister also urged BoG to consider divesting non-core assets, such as guesthouses and hotels, as a means of raising funds for its recapitalisation. “Why is the central bank in the guesthouse business?” he asked, suggesting that liquidating such assets could help shore up the bank’s finances.
Dr. Forson stressed that the idea of allocating ¢53 billion to recapitalise BoG would come at the cost of essential public services, such as roads, schools, and healthcare. “If we use ¢53 billion for the central bank, we will have to deny the taxpayer vital services,” he warned. “We simply cannot afford it.”
While ruling out an immediate bailout, Dr. Forson left the door open to a long-term solution, stating that if BoG were to present a feasible plan, the government could consider it. “If they come to me with a reasonable proposal, we can have a conversation,” he said. He also suggested that BoG might need to scale back its profits over the next decade to facilitate its recapitalisation.
The Finance Minister’s remarks come amid growing concerns over the BoG’s financial health, which has been exacerbated by a challenging economic environment.
Source:TheDotNews