Finance Minister Advocates Internal Solutions for Bank of Ghana Recapitalization

Finance Minister Dr. Cassiel Ato Forson rejects utilizing taxpayer funds for the Bank of Ghana’s ¢53 billion recapitalization. He encourages the bank to explore internal solutions and asset sales while stressing that providing taxpayer support would detract from crucial public services. Forson remains open to negotiations if the Bank of Ghana presents reasonable offers to address its financial challenges.

The Finance Minister of Ghana, Dr. Cassiel Ato Forson, unequivocally dismissed the proposal of utilizing taxpayer funds to support the Bank of Ghana (BoG), which has recently experienced a deficit of ¢60 billion. Speaking on Joy News’ PM Express, he emphasized that the BoG should explore internal strategies for a proposed ¢53 billion recapitalization instead of burdening taxpayers with such financial liabilities.

Dr. Forson urged the central bank to examine its own resources, mentioning its substantial new Head Office as a potential asset. He suggested that a sale and leaseback of this property could provide necessary funds and called for cuts in expenditure and events to bolster financial stability. He indicated that the taxpayer is unable to shoulder the cost of ¢53 billion.

Referring to a previously signed Memorandum of Understanding, Dr. Forson questioned the practicality of government funding for BoG’s recapitalization, stating, “Do you have the money? I’ve asked the Bank of Ghana to look within, cut expenditure because the taxpayer cannot afford ¢53 billion.” He maintained that the financing of the bank using public resources would detract from essential services such as roads and schools, stressing the importance of prioritizing public needs at this challenging time.

Additionally, he recommended that the BoG consider divesting from non-essential properties, including guest houses, to raise capital for its recapitalization efforts. He remarked, “They should sell some of them and use the money to recapitalize. The taxpayer cannot be used as a punching bag.”

Despite his firm position against using taxpayer funds, Dr. Forson indicated a willingness to engage in discussions regarding financial solutions as long as the BoG takes the initiative. He stated, “Luckily for me, the Governor is on board, and I expect the Governor to look within and cut expenditure to reflect the needs of the bank.” He expressed hope for a possible negotiation if the bank presents a reasonable proposal.

In conclusion, Dr. Cassiel Ato Forson advocates for the Bank of Ghana to seek internal solutions and assets rather than relying on inadequate taxpayer funding for its significant recapitalization needs. He highlights the potential of selling off non-essential properties and cutting back on expenditures as viable options. The ongoing financial discussions emphasize prioritizing essential public services over supporting the central bank with public funds.

Original Source: 3news.com