The Government of Ghana has injected a GH¢5.5 billion recapitalisation bond into the Bank of Ghana in a strategic move to restore the central bank’s financial health, following severe losses incurred during the 2023 Domestic Debt Exchange Programme (DDEP).
The Minister for Finance, Dr Cassiel Ato Forson, disclosed this on Thursday, July 23, 2026, while presenting the Mid-Year Fiscal Policy Review of the 2026 Budget to Parliament. He highlighted that the 2023 debt swap dealt a heavy blow to the central bank’s balance sheet.
“Twenty twenty-three domestic debt exchange program had a significant adverse impact on the Bank of Ghana’s balance sheet. Substantially weakened its capital and resulting in a negative net equity position,” he stated.
To cushion the institution and chart a path toward financial recovery, the government and the central bank formalised a Memorandum of Understanding (MoU) on January 6, 2025, outlining a gradual recapitalisation framework.
“To restore the bank’s financial strength the government and the Bank of Ghana signed a memorandum of understanding on sixth January twenty-five to recapitalize the bank over time,” he told the House.
Demonstrating commitment to the pact, the government moved to release the bond in March 2026 as an initial capital boost to shore up the regulator’s equity base.
“Consistent with the commitment in the MOU and as a results of this government resolved to restore the bank’s financial position government issued a recapitalization bond to the Bank of Ghana of five point five billion dollars as CDs to the Bank of Ghana in March twenty-six to strengthen the bank’s equity base,” Dr Forson said.
The Finance Minister further assured lawmakers that fiscal support would be continuous, noting that budgetary allocations will be made annually until the central bank’s capital structure is fully repaired, as mandated by the Bank of Ghana Amendment Act, 2025 (Act 1158).
“Mr speaker going forward the government of Ghana will make annual provision to capitalize the Bank of Ghana until the bank’s equity is fully restored. In accordance with the Bank of Ghana amendment act twenty twenty-five act eleven fifty-eight,” he said.
Dr Forson concluded by stressing that the central bank must also take internal steps to complement state support, revealing plans for an internal audit of operations to rein in spending and build long-term stability.
“Mr speaker government is helping to restore the Bank of Ghana’s capital. The bank itself will undertake a comprehensive operational efficiency review to reduce costs strengthen financial management and rebuild its long term financial sustainability,” he stated.
By: Rainbowradioonline.com/Ghana
