Bank of Ghana Requests GHC 53 Billion Bailout for Financial Stability

The Bank of Ghana is requesting GHC 53 billion in financial support to resolve its negative equity issues. This request was presented by Finance Minister Dr. Cassiel Ato Forson and is critical for stabilizing the central bank, which reported losses of GHC 60.8 billion in 2022.

The Bank of Ghana (BoG) is seeking a substantial financial injection of GHC 53 billion to rectify its negative equity situation. Finance Minister Dr. Cassiel Ato Forson made this announcement during the presentation of the 2025 Budget Statement in Parliament. He highlighted the urgency of the bailout, stating the need to address the challenges faced by the central bank.

The financial difficulties faced by the BoG are primarily due to major losses incurred during 2022, largely linked to the government’s domestic debt restructuring initiative. The central bank reported an extensive loss of GHC 60.8 billion last year, which has led to a negative equity position of GHC 55.12 billion, necessitating the proposed bailout.

The losses resulted from several factors, including impairment charges connected to government securities, loans extended to state-owned entities, and adverse exchange rate fluctuations. Dr. Forson emphasized to Parliament the bailout’s importance for stabilizing Ghana’s financial system while rebuilding trust in the central bank to facilitate the economy’s smooth operation.

The Bank of Ghana’s request for a GHC 53 billion bailout highlights the urgent need to address significant financial losses leading to negative equity. This situation has arisen due to government initiatives and adverse market conditions. The proposed financial support is crucial for stabilizing the central bank and, ultimately, the nation’s economy.

Original Source: www.ghanaweb.com