Finance Minister Dr. Cassiel Ato Forson has ruled out the use of taxpayer money to recapitalise the Bank of Ghana (BoG), following revelations that the central bank had signed a memorandum of understanding (MoU) with the previous administration for a ¢53 billion bailout.
Speaking on PM Express on Tuesday, March 11, after presenting the 2025 Budget Statement to Parliament, Dr. Forson stressed that the government could not afford such an expenditure at this time.
“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.
He revealed that despite the central bank’s financial crisis, he had instructed BoG to find internal solutions rather than burdening the taxpayer.
“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.”
Dr. Forson questioned the bank’s spending priorities, particularly its recent investments.
“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.”
He stressed that allocating such a significant sum to the BoG would deprive citizens of essential services and infrastructure.
“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.
“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.”
Despite his firm stance, Dr. Forson hinted at a willingness to negotiate if BoG made significant internal efforts to address its financial problems.
“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 also suggested a long-term approach for the bank’s recapitalisation.
“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 done.”