Bank of Ghana Requests GHC 53 Billion Bailout to Resolve Equity Issues

The Bank of Ghana is seeking a GHC 53 billion bailout to address negative equity issues arising from significant losses in 2022. Finance Minister Dr. Cassiel Ato Forson presented this information, stressing the need for this financial support to stabilize the central bank and the nation’s economy.

The Bank of Ghana (BoG) has requested GHC 53 billion in financial support to address its significant negative equity situation. This information was disclosed by Finance Minister Dr. Cassiel Ato Forson during the presentation of the 2025 Budget Statement in Parliament on March 11, 2025. Dr. Forson emphasized the necessity of the bailout, calling it critical to resolving the challenges faced by the central bank.

The BoG’s financial difficulties are largely linked to substantial losses incurred in 2022. The institution experienced a total loss of GHC 60.8 billion, thereby leading to a negative equity standing of GHC 55.12 billion. These losses arise chiefly from impairment charges related to government securities, loans extended to state-owned enterprises, and fluctuations in exchange rates.

In his address, Dr. Forson reassured members of Parliament that obtaining this bailout is crucial not only for stabilizing the financial system in Ghana but also for restoring confidence in the central bank and ensuring the economy operates efficiently.

In summary, the Bank of Ghana’s request for a GHC 53 billion bailout is a critical step towards addressing its negative equity challenges resulting from substantial losses in the previous year. This financial assistance is deemed essential for stabilizing the financial system and restoring trust in the central bank, thereby facilitating effective economic functioning.

Original Source: www.ghanaweb.com