BTA2023 Finance Minister Dr. Cassiel Ato Forson has firmly rejected using taxpayer funds to recapitalize the Bank of Ghana (BoG), urging the central bank to find internal solutions, including selling some of its assets.
This decision follows reports that BoG had signed a GH¢53 billion bailout agreement with the previous administration to address its financial challenges. Speaking on Joy News’ PM Express on March 11, after presenting the 2025 Budget Statement to Parliament, Dr. Forson emphasized that the government could not afford such a bailout.
Key Points from Dr. Forson’s Statement
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BoG’s Financial Struggles:
- The Bank of Ghana is facing negative equity, with a GH¢60 billion deficit, which Dr. Forson previously criticized while serving as Minority Leader.
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Internal Cost-Cutting Measures:
- BoG has been directed to cut expenditure and find solutions without burdening taxpayers.
- Dr. Forson questioned BoG’s spending priorities, particularly its new head office building, suggesting it could sell and lease back the property.
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Asset Sales to Raise Capital:
- He proposed selling guest houses and hotels owned by BoG to raise funds.
- “Why is the Bank of Ghana in the guest house business?” he questioned, urging the bank to offload non-core assets.
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Public Service Impact:
- He warned that using GH¢53 billion for BoG would divert funds from essential public services like roads, schools, and hospitals.
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Alternative Solutions:
- Dr. Forson suggested a long-term approach, where BoG reinvests its profits over the next 10 years to rebuild its capital.
- He is open to discussions if BoG presents a reasonable offer showing internal efforts to resolve its financial issues.
What’s Next for the Bank of Ghana?
With the government’s refusal to provide direct financial support, attention now shifts to how BoG will respond—whether through asset sales, expense reductions, or profit reinvestment—to stabilize its financial position.
