Finance Minister Ato Forson opposes taxpayer-funded bailout for Bank of Ghana’s GHC53 billion recapitalization. He advocates for internal solutions including asset sales and spending cuts. Forson warns that public funds should not compromise essential infrastructure and services, while leaving room for discussions if the bank addresses its financial issues effectively.
The Finance Minister, Dr. Cassiel Ato Forson, recently dismissed the possibility of utilizing taxpayer funds for the Bank of Ghana’s (BoG) much-needed GHC53 billion recapitalization following a reported ¢60 billion deficit. He emphasized the importance of the BoG exploring internal financial options rather than relying on public resources, stating, “the taxpayer cannot afford ¢53 billion.” Dr. Forson pointed to the new Head Office as a potential asset for a sale and lease-back arrangement to relieve financial pressures.
Dr. Forson noted that an MoU signed by the previous administration committed the government to provide funds for BoG’s recapitalization but questioned its feasibility. He reiterated, “Do you have the money?” insisting the BoG needs to identify ways to cut spending and utilize internal resources. He further cautioned that using public funds for the central bank’s support could lead to significant negative impacts on public services, stating, “Giving ¢53 billion to the central bank will simply mean that we will have to deny the taxpayer some public good.”
Additionally, he recommended that the Bank consider liquidating non-essential assets, such as guest houses and hotels, to generate funds. Dr. Forson argued, “The taxpayer cannot be used as a punching bag,” urging the BoG to reassess its asset portfolio. Despite his firm position, he indicated a willingness to discuss potential funding solutions with the BoG provided they proactively address their financial challenges themselves. “If the central bank is able to come to me with a reasonable offer, we can have a conversation,” he concluded.
Dr. Ato Forson’s strong stance against using taxpayer money to bail out the Bank of Ghana underscores the necessity for the bank to pursue internal solutions for its financial challenges. By considering asset liquidation and expenditure cuts, the BoG could potentially alleviate its financial burden without impacting public services. Forson’s commitment to dialogue indicates a path forward, contingent upon the bank’s proactive measures.
Original Source: 3news.com
