Finance Minister Advocates for Internal Solutions at Bank of Ghana

Finance Minister Dr. Cassiel Ato Forson has instructed the Bank of Ghana to seek internal solutions, including asset sales, for its recapitalization, firmly ruling out taxpayer funding. He highlighted the central bank’s poor financial health and urged it to reduce expenditures, emphasizing the necessity of preserving public funds for essential services.

Dr. Cassiel Ato Forson, Ghana’s Finance Minister, has formally ruled out taxpayer-funded recapitalization for the Bank of Ghana (BoG). He urged the central bank to seek internal solutions, including asset liquidation, in light of its dire financial condition, revealed through a Memorandum of Understanding (MoU) with the previous government for a GH¢53 billion bailout.

During an interview on March 11, following the 2025 Budget Statement presentation to Parliament, Dr. Forson stated that current government resources do not permit such a bailout. He highlighted the bank’s significant debt, asserting that it has generated negative equity, thus creating a precarious balance sheet.

Dr. Forson has directed BoG to cut its expenditures and find internal financial solutions rather than depending on taxpayer support. He criticized the bank’s spending choices, such as its investment in a new head office, suggesting it could sell and lease the property to procure needed funds.

He also pointed out that BoG’s ownership of guest houses and hotels is unnecessary, urging the bank to divest these assets to raise capital for recapitalization without burdening taxpayers. Moreover, he emphasized the adverse impact on public services like roads and hospitals if a large amount of taxpayer money were used to support the centralized bank.

While maintaining an uncompromising position, Dr. Forson expressed openness to discussions with BoG, advocating for a reasonable internal financial strategy before government involvement. He proposed a long-term approach to recapitalization, suggesting that BoG could gradually reinvest profits over the next decade for financial stability.

The Finance Minister, Dr. Cassiel Ato Forson, firmly insists on the necessity for the Bank of Ghana to explore internal options for addressing its financial concerns without resorting to taxpayer funds. By urging asset sales and expenditure cuts, Dr. Forson aims to ensure that public resources are preserved for essential services, underscoring a commitment to fiscal responsibility and long-term stability for the central bank.

Original Source: www.graphic.com.gh