Minister Forson Denies Taxpayer Funding for Bank of Ghana Bailout
Dr. Ato Forson, Minister of Finance, stated that Ghana will not utilize taxpayer money for a GH¢53 billion bailout of the Bank of Ghana, urging the institution to explore internal solutions instead. The Minister expressed concerns about the effect of such a bailout on public services and suggested cost-cutting measures within the BoG’s expenditures and assets. He is open to discussing a future financial recovery plan with the central bank.
Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, has declared that taxpayer funds will not be utilized for the proposed GH¢53 billion bailout of the Bank of Ghana (BoG). This assertion arises from disclosures indicating that the previous administration, led by Ernest Addison, had authorized a memorandum of understanding (MoU) aimed at addressing the financial difficulties faced by the central bank.
In a recent interview with Joy News on March 11, 2025, following his presentation of the 2025 Budget Statement to Parliament, Dr. Forson underlined the critical financial state of the BoG, warning that government intervention would impose an additional burden on taxpayers. He mentioned, “On the back of the report that showed the GH¢60 billion hole…the Bank of Ghana had generated so much debt, so much deficit.”
Maintaining that the BoG should seek internal solutions, Dr. Forson remarked that the institution must find ways to mitigate its challenges without resorting to public funds. He reiterated, “I’ve asked the Bank of Ghana to look within and cut expenditures because the taxpayer cannot afford GH¢53 billion.”
Moreover, Dr. Forson pointed to specific areas such as the BoG’s recent expenditures and asset holdings as potential avenues for cost reductions. He suggested that the BoG might consider selling its large new head office, stating, “They have a choice—a choice to sell and lease back.”
Warning of the implications of such a massive bailout, Dr. Forson stated that utilizing GH¢53 billion for the central bank would detract from vital public services, including healthcare, education, and infrastructure. “Using GH¢53 billion to bail out the central bank would mean denying taxpayers critical public goods… at this stage, the answer is no.”
Additionally, he recommended the sale of non-essential properties, such as hotels, to generate funds for the BoG. “They should sell some of them and use the money to recapitalise. The taxpayer cannot be used as a punching bag.”
While dismissing the prospect of an immediate government bailout, Dr. Forson proposed that the BoG could present a viable financial reconstruction strategy in the future. He expressed willingness to engage in discussions, stating, “If the central bank is able to come to me with a reasonable offer, we can have a conversation.”
Dr. Forson further suggested a lengthy timeframe for the BoG’s recovery, noting, “I have also said that they may have to consider winding back their profit over the next 10 years to recapitalise.”
In summary, Dr. Cassiel Ato Forson has asserted that taxpayer funding will not be used for the GH¢53 billion bailout of the Bank of Ghana, emphasizing the need for internal financial solutions. He highlighted the potential negative impact on public services and urged the BoG to reduce expenditures and sell non-essential assets. While ruling out immediate assistance, he remained open to future discussions on sustainable recapitalization plans, considering a long-term approach for the central bank’s financial recovery.
Original Source: www.ghanaweb.com
