Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, declared that the government will not use taxpayer money for a GH¢53 billion bailout for the Bank of Ghana, suggesting the bank must find internal ways to address its financial crisis. He warned such a bail-out would negatively impact essential public services and called for expenditure cuts and asset sales within the bank.
Dr. Cassiel Ato Forson, the Minister of Finance of Ghana, has declared that taxpayer funds will not be used to recapitalize the Bank of Ghana (BoG). This statement comes after it was revealed that the previous administration led by Ernest Addison had signed a memorandum of understanding (MoU) for a bailout amounting to GH¢53 billion to alleviate the central bank’s financial problems.
In an interview conducted by Joy News on March 11, 2025, following his presentation of the 2025 Budget Statement to Parliament, Dr. Forson cited the significant financial difficulties faced by the Bank of Ghana. He asserted that any government intervention would only place further financial strain on the taxpayers, emphasizing the bank’s unsustainable debts. “On the back of the report that showed the GH¢60 billion hole, I kept saying that the Bank of Ghana had generated so much debt, so much deficit,” he remarked.
Acknowledging the financial crisis, Dr. Forson stated that the Bank of Ghana must explore internal solutions instead of relying on external public funding. He insisted that the institution needs to cut expenditures significantly, saying, “I’ve asked the Bank of Ghana to look within and cut expenditures because the taxpayer cannot afford GH¢53 billion.”
Furthermore, Dr. Forson flagged recent expenditures and assets of the BoG as potential areas for cost reductions. He suggested the bank could sell its new and expensive head office and consider leasing it back to manage costs. He reiterated, “The taxpayer cannot afford GH¢53 billion.”
He further cautioned that utilizing such a vast sum for a bailout would compromise vital public services including infrastructure and health care. “Using GH¢53 billion to bail out the central bank would mean denying taxpayers critical public goods like roads, schools, and hospitals,” he stated.
In advocating for fiscal responsibility, Dr. Forson recommended the sale of non-essential assets, including properties like guest houses. He commented, “They should sell some of them and use the money to recapitalize. The taxpayer cannot be used as a punching bag.”
Dr. Forson ruled out immediate financial aid from the government but proposed a strategic approach for recovery. He expressed willingness to discuss further financial plans if the BoG presents a viable proposal. “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,” Dr. Forson remarked. He also indicated that adjusting profit distributions over the next decade could be a possible avenue for rebuilding the bank’s financial health.
In summary, Dr. Cassiel Ato Forson has firmly stated that the Ghanaian government will not impose the GH¢53 billion bailout burden on taxpayers to support the Bank of Ghana. He emphasizes the need for the central bank to implement internal measures for financial recovery and cautions that public funds should prioritize essential public services. By focusing on cost-cutting and asset liquidation, the Bank of Ghana can restore financial stability without further imposing on taxpayers.
Original Source: www.ghanaweb.com
