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Finance Minister Dr. Cassiel Ato Forson has made it clear that the government will not use taxpayer money to recapitalise the Bank of Ghana (BoG). His statement follows reports that the central bank, under the previous leadership of Dr. Ernest Addison, had signed a memorandum of understanding (MoU) for a ¢53 billion bailout.
Speaking on Joy News on Tuesday, March 11, after presenting the 2025 Budget Statement to Parliament, Dr. Forson emphasized the financial difficulties facing BoG but ruled out any government intervention that would burden taxpayers further.
“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 severity of the financial crisis, Dr. Forson maintained that BoG must find internal solutions rather than depend 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.
He highlighted potential areas where BoG could cut costs, particularly pointing to its recent expenditures and assets.
“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 also warned that allocating such a large sum to BoG would mean diverting resources from 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.
To generate revenue, he urged BoG to consider selling non-essential assets.
“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 ruling out an immediate bailout, Dr. Forson proposed a long-term strategy for BoG to restore its financial stability.
“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.
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