Finance Minister Rejects Taxpayer Bailout for Bank of Ghana

Finance Minister Dr. Cassiel Ato Forson rejects using taxpayer funds to support the Bank of Ghana’s ¢60 billion deficit. He suggests internal measures, like leasing the Head Office, cutting unnecessary expenses, and selling non-essential assets. Forson emphasizes the importance of maintaining public services and expresses openness to negotiations if the central bank takes proactive steps.

The Finance Minister, Dr. Cassiel Ato Forson, has firmly rejected the notion of using taxpayer funds to support the Bank of Ghana (BoG), following a significant deficit of ¢60 billion and a subsequent negative equity position. Speaking on Joy News’ PM Express after the 2025 Budget Statement presentation, he emphasized that BoG must explore internal solutions instead of relying on public funds for a proposed ¢53 billion recapitalization.

Dr. Forson highlighted the potential option for BoG to consider a sale and leaseback arrangement involving its Head Office as a means to generate required funds. He urged the central bank to examine their expenses and potentially reduce expenditures and events, asserting that the burden should not fall on taxpayers who cannot afford such a large monetary commitment.

He mentioned an existing Memorandum of Understanding (MoU) wherein the previous administration committed to providing ¢53 billion for the bank’s recapitalization but questioned the viability of this arrangement given the current financial constraints. Dr. Forson reiterated his request for BoG to conduct a thorough internal review before seeking external assistance.

Furthermore, he cautioned that utilizing public funds for this purpose would result in sacrificing essential public goods such as infrastructure, education, and healthcare. To mitigate the situation, he proposes that BoG divest from non-essential assets, including guest houses, to raise the necessary capital without impacting taxpayers.

Despite his strict stance, the Finance Minister expressed a willingness to engage in negotiations provided that BoG initiates steps to address its own financial challenges. He stated, “Luckily for me, the Governor is on board, and I expect the Governor to look within and cut expenditure to reflect the needs of the bank,” indicating a potential for collaborative solutions if BoG leads the effort.

In summary, Dr. Cassiel Ato Forson advocates for the Bank of Ghana to seek internal solutions rather than turn to taxpayer funds for its ¢53 billion recapitalization. His recommendations include exploring sale and leaseback options, reducing expenditures, and divesting non-essential assets. Dr. Forson underscores the importance of prioritizing public goods and expresses a willingness to negotiate once the bank assumes responsibility for its financial issues.

Original Source: 3news.com