Ghana’s financial landscape is facing significant challenges, with the Bank of Ghana (BoG) seeking a massive bailout and the central government grappling with substantial arrears.
According to Finance Minister Dr. Cassiel Ato Forson, the BoG requires a GHS53 billion bailout to address its negative equity challenge. Dr. Forson stated, “The BoG is also seeking an amount of GHS53 billion as a bailout to be able to address their negative equity challenge they face.”
The central government’s financial woes are equally concerning, with total arrears reaching GHS67.5 billion as of December 2024.
This figure represents 5.2% of Ghana’s GDP, with the road sector alone accounting for GHS21 billion. Dr. Forson explained, “At the end of December 2024, total central government arrears amounted to GHS67.5 billion, representing 5.2% of GDP. Mr. Speaker, with the road sector recording arrears of GHS21 billion.”
To address these arrears, the Ministry of Finance (MoF) conducted a thorough review, requesting details on all unpaid claims from Ministries, Departments, and Agencies (MDAs).
Dr. Forson noted, “Subsequently, Mr. Speaker, the MoF held a special hearing with the MDAs to validate the arrears submitted for payment. The response from the MDAs revealed that a staggering amount of GHS67.5 billion is owed to government contractors and suppliers.”
The breakdown of these arrears includes GHS49.2 billion in outstanding interim payment invoices from MDAs and GHS18.3 billion in bank transfers at the Controller and Accountant General’s Department.
Dr. Forson emphasized that these figures exclude additional debts owed to various entities, highlighting the need for urgent attention to Ghana’s financial situation.