Ghana’s Finance Minister Reveals Need for GHS53 Billion Bailout for BoG
Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, revealed that the Bank of Ghana needs GHS53 billion to tackle negative equity. He also reported that the central government has accumulated arrears totaling GHS67.5 billion, significantly impacting various sectors, particularly roads.
Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, announced that the Bank of Ghana (BoG) requires a bailout of GHS53 billion to address its challenges stemming from negative equity. This disclosure was made during the presentation of the government’s 2025 Budget Statement and Economic Policy in Parliament on March 11, 2025. Dr. Forson emphasized the critical financial difficulties faced by the central bank that necessitate this significant financial support to ensure operational stability.
In addition, Dr. Forson revealed that the central government’s arrears have accumulated to GHS67.5 billion by December 2024, which corresponds to 5.2% of Ghana’s GDP. He highlighted that the road sector alone accounts for considerable arrears amounting to GHS21 billion, underlining the extensive fiscal challenges confronting the government.
Upon assuming office, Dr. Forson noted the immediate influx of payment requests from contractors and suppliers. To gain a clearer understanding of the arrears, his office sought detailed information from Ministries, Departments, and Agencies (MDAs) on January 28, 2025. A subsequent special hearing confirmed the staggering total of GHS67.5 billion owed to contractors and suppliers by government.
The detailed breakdown indicated that GHS49.2 billion represents interim payment invoices pending from the MDAs, while GHS18.3 billion is associated with bank transfers recorded at the Controller and Accountant General’s Department. Furthermore, the Minister clarified that this total of GHS67.5 billion does not account for additional debts, including $1.73 billion owed to Independent Power Producers, GHS68 billion owed by the Electricity Company of Ghana to contractors, GHS32 billion owed by COCOBOD, and GHS5.75 billion owed by the Ghana Road Fund.
In summary, Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, has highlighted urgent financial challenges faced by the Bank of Ghana and the central government, necessitating a substantial bailout and revealing significant arrears owed to various contractors and suppliers. The total central government arrears stand at GHS67.5 billion, reflecting extensive fiscal obligations that require attention and resolution for improved financial stability in the country.
Original Source: www.gbcghanaonline.com
