Dr. Cassiel Ato Baah Forson announced the Bank of Ghana needs a GHS53 billion bailout due to negative equity. The government’s total arrears reached GHS67.5 billion, with significant amounts owed to contractors in various sectors. Urgent financial reforms are necessary to address these challenges and stabilize operations.
Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, announced that the Bank of Ghana (BoG) requires a bailout of GHS53 billion to resolve its current negative equity issue. This statement was made during the presentation of the 2025 Budget Statement in Parliament, highlighting the urgent financial challenges faced by the central bank.
The Minister indicated that as of December 2024, total central government arrears reached GHS67.5 billion, which constitutes 5.2% of the nation’s GDP. Notably, the road sector alone accounted for GHS21 billion of these arrears.
Dr. Forson expressed the overwhelming demands for payments from contractors upon assuming his duties, prompting the Ministry of Finance (MoF) to seek clarity on the total arrears. Following a special hearing, it was confirmed that GHS67.5 billion is owed to contractors and suppliers across various Ministries, Departments, and Agencies (MDAs).
This total breaks down into GHS49.2 billion in pending interim payment invoices and GHS18.3 billion in bank transfers at the Controller and Accountant General’s Department. Furthermore, this figure excludes debts like $1.73 billion owed to Independent Power Producers (IPPs) and GHS68 billion owed by the Electricity Company of Ghana (ECG) to its contractors. Other significant debts include GHS32 billion from COCOBOD and GHS5.75 billion from the Ghana Road Fund.
The announcement by Ghana’s Finance Minister illustrates the dire financial situation of the Bank of Ghana, which requires a GHS53 billion bailout to address its negative equity. Additionally, the government’s total arrears of GHS67.5 billion spotlight significant financial obligations affecting key sectors, particularly road infrastructure. These figures underscore the urgency for fiscal reforms and effective debt management strategies in Ghana’s economic policy.
Original Source: www.gbcghanaonline.com
