Ghana’s Finance Minister Dr. Ato Forson rejects taxpayer funding for a GH¢53 billion Bank of Ghana bailout, emphasizing the need for internal solutions and cost-cutting by the BoG. He warns that using such funds would jeopardize vital public services and suggests the bank consider asset liquidation and a sustainable recovery plan.
Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has made it clear that taxpayer money will not be used to recapitalize the Bank of Ghana (BoG), rejecting a proposed GH¢53 billion bailout initiated by the previous administration. This announcement comes after a comprehensive analysis revealing the bank’s considerable financial difficulties, which Dr. Forson addressed in an interview following the presentation of the 2025 Budget Statement to Parliament.
Dr. Forson referenced an alarming report indicating a GH¢60 billion deficit and noted that the BoG has accrued substantial debt and negative equity, resulting in a distressed financial system. The Minister stressed the need for the BoG to explore internal cost-cutting measures rather than depending on public funds to resolve its financial issues.
He outlined the necessity for the BoG to prioritize internal fiscal adjustments, suggesting it should reassess its expenditures and assets. He asserted that the central bank should consider selling or leasing its new head office and other non-essential properties to generate revenue instead of relying on taxpayer support.
Furthermore, Dr. Forson highlighted the impact of a GH¢53 billion allocation on public services, warning that it could result in the deprivation of critical infrastructure such as schools, roads, and hospitals. He emphasized that using taxpayers’ money for such purposes is untenable at this time.
In addition to pushing for asset liquidation, Dr. Forson presented a long-term approach for the BoG by suggesting it present a reasonable financial recovery plan. He also proposed potentially rolling back profits over the next decade as a method to facilitate recapitalization, emphasizing the responsibility of the bank to resolve its own financial turmoils without burdening the citizenry.
In summary, Dr. Cassiel Ato Forson has decisively rejected the use of taxpayer funds for the Bank of Ghana’s bailout, pointing to the significant financial strain the bank faces. He advocates for the BoG to implement internal reforms, including cost-cutting measures and asset liquidation. Dr. Forson’s stance aims to protect public resources and prioritize essential services for Ghanaians, while outlining the need for a viable long-term recovery plan for the central bank.
Original Source: www.ghanaweb.com
