Finance Minister Dr Cassiel Ato Forson has ruled out the use of taxpayer funds to recapitalise the Bank of Ghana (BoG), insisting that the central bank must explore internal solutions, including selling off some of its assets.
This comes after revelations that BoG had signed a Memorandum of Understanding (MoU) with the previous administration to receive a GH¢53 billion bailout to address its financial challenges.
Speaking on Joy News’ PM Express on Tuesday, March 11, after presenting the 2025 Budget Statement to Parliament, Dr Forson maintained that government could not afford such a bailout at this time.
"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 stated.
Despite the dire financial situation at the central bank, Dr Forson said he had directed BoG to cut expenditure and find internal solutions rather than burdening taxpayers.
"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."
Dr Forson raised concerns about BoG’s recent spending priorities, including its investment in a new head office building. He suggested that the bank could consider selling and leasing back the property to generate funds.
"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 also proposed that BoG should offload some of its guest houses and hotels to raise capital instead of relying on public funds.
"They have hotels, like guest houses and others. Why are they in the guest house business? They should sell some of them and use the money to recapitalise. The taxpayer cannot be used as a punching bag."
Dr Forson stressed that diverting such a huge amount of taxpayer money to support BoG would come at the cost of critical 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."
While maintaining a firm stance, Dr Forson signalled a willingness to negotiate, provided the central bank demonstrated significant internal efforts to address its financial problems.
"If the central bank is able to come to me with a reasonable offer, we can have a conversation. But it must start from them."
He further suggested a long-term recapitalisation approach, where BoG could gradually reinvest its profits over a decade.
"I have also said that they may have to consider winding back their profit over the next 10 years to recapitalise. That can also be done."
With the government’s clear directive for BoG to resolve its financial woes without relying on taxpayers, all eyes will be on the central bank’s next course of action.
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