Finance Minister Dr. Cassiel Ato Forson has disclosed that the government will not use taxpayer funds to recapitalise the Bank of Ghana (BoG).
He said although the central bank had signed a memorandum of understanding (MoU) under the previous Ernest Addison-led administration for a ¢53 billion bailout, taxpayers money would not be used for this bailout.
The Minsiter said using state resources for the bailout will further burden the taxpayer.
Dr. Forson made the remarks in an interview with Joy News on Tuesday, March 11, 2025 after presenting the 2025 Budget Statement to Parliament.
“On the back of the report that showed the ¢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.
“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 ¢53 billion. I’ve asked the Bank of Ghana to look within, cut expenditure, because the taxpayer cannot afford ¢53 billion,” he said.
He went on to state that “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 and cut expenditure and reduce events. The taxpayer cannot afford ¢53 billion.
“Giving ¢53 billion to the central bank will simply mean that we will have to deny the taxpayer some public good, like roads, like schools, like hospitals. Is that what we want? Can we afford it? At this stage, the answer is no. We cannot afford that. And so the central bank must look within,” he asserted.
The Minister advised the BoG to consider selling off 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.
“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.
By: Rainbowradioonline.com/Ghana
