Dr. Cassiel Ato Forson, the Finance Minister, has categorically stated that taxpayer money will not be allocated to the recapitalisation of the Bank of Ghana (BoG). This declaration follows revelations that, under the previous Ernest Addison-led administration, the central bank had signed a memorandum of understanding (MoU) for a ¢53 billion bailout.
Speaking in an interview following the presentation of the 2025 Budget to Parliament, Dr. Forson pointed out the severe financial challenges facing the BoG and dismissed any proposals that would further burden taxpayers.
“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 current financial crisis at the BoG, Dr. Forson maintained that the institution must find internal solutions rather than relying on public funds. He explained this saying, “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 went on to suggest that the BoG reviews its expenditure and leverage its assets as part of a broader financial restructuring.
“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 warned of the broader implications of using public funds for such a bailout, citing that taxpayers will have to be denied some public good.
“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.”
The BoG has further been urged by the minister to consider selling non-essential assets in order to generate revenue. “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 also left an open door for a dialogue should the BoG propose a viable, long-term strategy. “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.”
Alternatively, he also said that for restoring financial stability at the BoG, Bank should consider winding back their profit over the next 10 years.
“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 an option.”
