The Bank of Ghana is requesting GHC 53 billion in bailout funds to address its negative equity, largely resulting from losses due to government debt restructuring. Finance Minister Dr. Ato Forson emphasized this need during the 2025 Budget presentation, detailing the financial struggles faced by the central bank and their implications for the national economy.
The Bank of Ghana (BoG) is seeking a GHC 53 billion bailout to stabilize its operations and address its negative equity issues. Finance Minister Dr. Cassiel Ato Forson presented this need during his 2025 Budget Statement in Parliament on March 11, emphasizing the urgency of the situation. The bailout aims to restore confidence in the central bank and support the national economy.
The financial difficulties faced by BoG are largely due to significant losses incurred in 2022, totaling GHC 60.8 billion. This negative equity arises from the government’s domestic debt restructuring program, which heavily impacted the central bank’s finance health.
Key factors contributing to the BoG’s losses include impairment charges on government securities, loans to state-owned enterprises, and unfavorable exchange rate fluctuations. Dr. Forson highlighted that the proposed bailout is crucial for restoring stability to Ghana’s financial system and the overall economy, ensuring efficient central bank operations.
The Bank of Ghana’s request for a GHC 53 billion bailout underscores the urgent need to address its significant financial losses and negative equity resulting from recent economic challenges. This intervention is deemed vital for revitalizing confidence in the central banking system and fostering a stable economic environment in Ghana.
Original Source: www.ghanaweb.com
