Dr Cassiel Ato Forson, the finance minister has boldly stated the Ghanaian taxpayer cannot be used as a punching bag to recapitalise the central bank.
Dr Cassiel Ato Forson yesterday during his budget reading disclosed that the Central Bank is desperately in need of a GHS53 billion bailout to address its negative equity challenge.
He made this known during a presentation of the 2025 Budget Statement and Economic Policy in Parliament on Tuesday, March 11. Dr. Ato Forson underscored the central bank’s urgent need for a substantial bailout to restore stability.
“The BoG is also seeking an amount of GHS53 billion as a bailout to be able to address their negative equity challenge, they face,” Dr. Forson stated.
Delving further into the Central bank’s woes, Ato Forson revealed, that 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.
Speaking on JOYNEWS he detailed, “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,”
“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 added.
Ato Forson further called on the Central Bank to look within, he added, “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”.
Cassiel Ato Forson added, “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.”
“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.
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”, he added
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