Finance Minister Advocates Internal Solutions for Bank of Ghana’s Recapitalization

Finance Minister Dr. Cassiel Ato Forson rejects taxpayer funding for the Bank of Ghana’s recapitalization due to a GH¢60 billion deficit. He suggests the central bank lease back its Head Office and divest non-essential assets instead. Emphasizing fiscal responsibility, he maintains that public funds should not compromise critical infrastructure and services.

The Finance Minister, Dr. Cassiel Ato Forson, has categorically rejected the use of taxpayer money to support the Bank of Ghana (BoG), which is dealing with a GH¢60 billion deficit and negative equity. Following the 2025 Budget Statement presentation, he emphasized the necessity for BoG to explore internal avenues for a GH¢53 billion recapitalization rather than depending on public funds.

Dr. Forson proposed that BoG might consider leasing back its newly established Head Office as a potential financial strategy. He elaborated that the central bank should initiate internal measures to manage its expenditures effectively and refrain from capitalizing on taxpayer funds, which he deemed unaffordable given the current economic challenges.

He highlighted a previously signed Memorandum of Understanding (MoU) obligating the government to inject GH¢53 billion for BoG’s recapitalization but questioned the practicality of this commitment given the government’s financial limitations. Dr. Forson insisted that taxpayer funds devoted to bailing out the central bank would lead to reduced public services including essential infrastructure like roads, schools, and hospitals.

Additionally, he suggested the divestment of non-essential assets, such as guest houses, to generate necessary funds for recapitalization. Dr. Forson argued that the government cannot accept BoG treating taxpayers as a financial “punching bag.”

Nonetheless, the Finance Minister expressed a willingness to engage in negotiations with BoG if they demonstrate proactive measures to resolve their issues. He indicated that discussions could occur if BoG presents a reasonable financial proposal after implementing their internal cost-cutting.

In summary, Finance Minister Dr. Cassiel Ato Forson strongly advocates against using taxpayer money for the Bank of Ghana’s financial recovery, urging the institution to explore internal resources for its recapitalization. He maintains that redirecting funds from the public for this purpose would adversely affect essential services. Furthermore, the Minister highlights asset liquidation as a viable option and remains open to discussions should BoG take the initiative to resolve its financial challenges themselves.

Original Source: 3news.com

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Carmen Mendez is an engaging editor and political journalist with extensive experience. After completing her degree in journalism at Yale University, she worked her way up through the ranks at various major news organizations, holding positions from staff writer to editor. Carmen is skilled at uncovering the nuances of complex political scenarios and is an advocate for transparent journalism.

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