Ghana’s Finance Minister Rejects GH¢53 Billion Bank of Ghana Bailout Proposal

Ghana’s Finance Minister Dr. Cassiel Ato Forson has rejected taxpayer funding for a GH¢53 billion bailout of the Bank of Ghana, calling for internal-cost reductions within the institution. He expressed concerns about the impact of such a bailout on public services and urged the bank to explore alternative financial strategies, including divesting from non-essential assets.

Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, has emphatically declared that taxpayer funds will not be utilized to recapitalize the Bank of Ghana (BoG). This statement followed the disclosure that the previous administration led by Ernest Addison had committed to a memorandum of understanding that entailed a GH¢53 billion bailout to remedy the financial issues facing the central bank.

In an interview with Joy News on March 11, 2025, after presenting the Budget Statement to Parliament for 2025, Dr. Forson addressed the significant financial distress afflicting the BoG. He indicated that involving taxpayer money would further exacerbate the economic burden on citizens.

Dr. Forson remarked, “On the back of the report that showed the GH¢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.”

Despite acknowledging the urgent financial predicament of the BoG, Dr. Forson insisted that the institution should seek solutions internally instead of depending on public funds. He reiterated, “I’ve asked the Bank of Ghana to look within and cut expenditures because the taxpayer cannot afford GH¢53 billion.”

The Minister highlighted recent expenditures and assets of the BoG, suggesting areas that could be optimized for cost reductions. He mentioned the new headquarters, stating that the BoG possessed the option to sell and lease back their large building if necessary, emphasizing the need to reduce unnecessary expenditures.

Dr. Forson cautioned that sanctioning a GH¢53 billion bailout would result in significant detriment, as it would consume resources crucial for public services such as roads, schools, and hospitals. He stated, “Is that what we want? Can we afford it? At this stage, the answer is no. The central bank must find internal solutions.”

Moreover, he recommended that the BoG divest from non-essential assets, including guest houses, which he deemed unnecessary. He asserted, “The taxpayer cannot be used as a punching bag.”

In concluding, Dr. Forson dismissed the prospect of immediate government bailouts, proposing a more strategic long-term approach for the BoG to recuperate financially. He indicated, “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.”

The Minister also mentioned that the BoG might need to consider restructuring their profits over a decade to facilitate recapitalization, presenting this as a viable option moving forward.

In summary, Dr. Cassiel Ato Forson has unequivocally ruled out taxpayer funding for the Bank of Ghana’s recapitalization, emphasizing the need for the institution to explore internal solutions to its financial difficulties. He has articulated concerns about the implications of a GH¢53 billion bailout on public services and has encouraged the BoG to cut expenses and sell non-essential assets. A long-term financial strategy is suggested, prioritizing internal viability over state-funded interventions.

Original Source: www.ghanaweb.com