Finance Minister Dr. Cassiel Ato Forson has ruled out taxpayer funds for recapitalizing the Bank of Ghana, urging it to explore internal solutions through asset sales. He criticized the bank’s spending priorities and proposed the selling of non-essential properties to generate funds instead of relying on public money.
Finance Minister Dr. Cassiel Ato Forson has stated that taxpayer funds will not be utilized to recapitalize the Bank of Ghana (BoG). Instead, he emphasized that the central bank needs to find internal solutions, including asset sales, to resolve its financial issues. Previously, BoG signed a memorandum with the former administration for a GH¢53 billion bailout to address financial challenges, a move Forson says the current government cannot afford.
Dr. Forson discussed the significant financial gap faced by BoG, revealing the bank has accumulated considerable debt leading to negative equity. He urged the central bank to reduce its expenses and seek internal funding instead of imposing this financial burden on taxpayers. He noted the discrepancy between the bank’s expenditure and the financial reality presented in reports detailing the substantial deficit.
The Finance Minister also highlighted concerns regarding BoG’s recent investments, particularly in a new head office building. He suggested selling and leasing back the property as a potential strategy for generating capital. He insisted that the bank must cut down on spending and events, reiterating that taxpayers should not bear the financial load of the GH¢53 billion.
Forson proposed that BoG could also divest from non-essential assets, such as hotels and guest houses, to raise funds for recapitalization. He pointed out that keeping these assets is unnecessary and that the profits from selling them could significantly contribute to the bank’s capital needs. He firmly stated that diverting taxpayer funds would negatively impact essential public services like education and infrastructure.
While Forson maintains a strong position against using public funds, he remains open to discussion if the Bank of Ghana can present a viable internal recovery strategy. He mentioned the possibility of a gradual reinvestment plan over a decade to stabilize the central bank’s finances and achieve sustainable recapitalization. As the government directs BoG to seek solutions independently, the expectation grows for the bank’s forthcoming strategies.
In summary, Finance Minister Dr. Cassiel Ato Forson has declared that the Bank of Ghana must remedy its financial issues using internal strategies and asset sales rather than taxpayer funds. He has raised concerns about past expenditures and proposed selling non-core assets, emphasizing the need to prioritize public services. There is an openness to dialogue if BoG presents effective solutions, with the potential for a long-term recapitalization approach.
Original Source: www.graphic.com.gh
