Bank of Ghana Headquarters
Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, has firmly stated that the government will not use taxpayer money to recapitalise the Bank of Ghana (BoG).
This follows revelations that the previous Ernest Addison-led administration had signed a memorandum of understanding (MoU) for a GH¢53 billion bailout to address the central bank’s financial challenges.
In an interview with Joy News on March 11, 2025, after presenting the 2025 Budget Statement to Parliament, Dr. Forson highlighted the BoG’s severe financial strain and stressed that any government intervention would further burden taxpayers.
“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,” he stated.
Despite the BoG’s financial crisis, Dr. Forson emphasised that the institution must find internal solutions rather than relying 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 GH¢53 billion. I’ve asked the Bank of Ghana to look within and cut expenditures because the taxpayer cannot afford GH¢53 billion,” he added.
Dr. Forson also identified the BoG’s recent expenditures and assets as areas for potential cost-cutting measures.
“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, cut expenditures, and reduce events. The taxpayer cannot afford GH¢53 billion,” he stressed.
He warned that allocating such a massive sum to recapitalise the BoG would deprive citizens of essential public services.
“Using GH¢53 billion to bail out the central bank would mean denying taxpayers critical public goods like roads, schools, and hospitals. Is that what we want? Can we afford it? At this stage, the answer is no. The central bank must find internal solutions,” he asserted.
Dr. Forson also urged the BoG to sell non-essential assets to generate revenue.
“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 government bailout, Dr. Forson suggested a long-term strategy for the BoG to rebuild its financial standing.
“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.
ID/MA
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