Finance Minister Dr. Cassiel Ato Forson has firmly stated that the government will not use taxpayer funds to recapitalise the Bank of Ghana (BoG), following revelations that the central bank had signed a memorandum of understanding (MoU) under the previous Ernest Addison-led administration for a ¢53 billion bailout.
Speaking on Joy News on Tuesday, March 11, after presenting the 2025 Budget Statement to Parliament, Dr. Forson underscored the severe financial strain on the BoG and ruled out any government intervention that would further burden taxpayers.
“On the back of the report that showed the ¢60 billion hole, remember, in my previous life as the Minority Leader, I kept saying that the Bank of Ghana had generated so much debt, so much deficit. As a result, their balance sheet is not healthy, and they have generated negative equity,” he stated.
Despite the BoG’s financial crisis, Dr. Forson emphasized that the institution must find internal solutions rather than relying on public funds.
“Apparently, the previous administration in the Bank of Ghana had signed an MoU for the Government of Ghana, or the taxpayer, to recapitalise the central bank with ¢53 billion. I’ve asked the Bank of Ghana to look within, cut expenditure, because the taxpayer cannot afford ¢53 billion,” he said.
Highlighting potential cost-cutting measures, he pointed to BoG’s recent expenditures and assets as areas for financial restructuring.
“First of all, they have to look within. You know, you’ve seen their new Head Office, a very big building. They have a choice—a choice to sell and lease back if they want. They have to look within and cut expenditure and reduce events. The taxpayer cannot afford ¢53 billion,” he stressed.
Dr. Forson further warned that allocating such a massive sum to recapitalise BoG would deprive citizens of essential public services.
“Giving ¢53 billion to the central bank will simply mean that we will have to deny the taxpayer some public good, like roads, like schools, like hospitals. Is that what we want? Can we afford it? At this stage, the answer is no. We cannot afford that. And so the central bank must look within,” he asserted.
He also urged BoG to consider selling off non-essential assets to generate revenue.
“They have hotels, like guest houses and others. Why are they in the guest house business? They should sell some of them and use the money to recapitalise. The taxpayer cannot be used as a punching bag,” he stated.
While shutting down any immediate government bailout, Dr. Forson suggested a long-term strategy for BoG to rebuild its financial standing.
“If the central bank is able to come to me with a reasonable offer, we can have a conversation. But it must start from them,” he noted.
“I have also said that they may have to consider winding back their profit over the next 10 years to recapitalise. That can also be an option,” he added.