Ghana’s Finance Minister states that the Bank of Ghana requires a GHS53 billion bailout due to negative equity. Additionally, total central government arrears have reached GHS67.5 billion, heavily impacting the road sector, and revealing significant fiscal challenges for the government.
In a recent address to Parliament, Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, disclosed that the Bank of Ghana (BoG) is in urgent need of a bailout amounting to GHS53 billion to resolve its negative equity situation. This financial request was highlighted during his presentation of the government’s 2025 Budget Statement and Economic Policy on March 11, 2025.
Dr. Forson pointed out the pressing financial challenges the central bank is confronting, emphasizing the need for significant funding to enhance its operational stability. He articulated, “The BoG is also seeking an amount of GHS53 billion as a bailout to be able to address the negative equity challenge they face.”
Furthermore, the Finance Minister reported that as of December 2024, the total arrears owed by central government had reached GHS67.5 billion, which accounts for 5.2% of Ghana’s Gross Domestic Product (GDP). The road sector alone was responsible for GHS21 billion of this amount, highlighting significant fiscal distress in that area.
He recounted the overwhelming number of payment requests from contractors and suppliers upon assuming his role, leading the Ministry of Finance (MoF) to request a comprehensive account of all arrears from Ministries, Departments, and Agencies (MDAs) on January 28, 2025. A subsequent hearing confirmed the total arrears at a staggering GHS67.5 billion.
The arrears include GHS49.2 billion in outstanding interim invoices from MDAs, alongside GHS18.3 billion in bank transfers at the Controller and Accountant General’s Department. The Finance Minister also clarified that this GHS67.5 billion does not factor in external debts, including $1.73 billion owed to Independent Power Producers (IPPs) and significant amounts owed by the Electricity Company of Ghana (ECG) and COCOBOD to contractors.
In summary, the Bank of Ghana is poised to request GHS53 billion to tackle its negative equity challenge, as articulated by Finance Minister Dr. Casiel Ato Baah Forson. The Minister also highlighted that the total central government arrears have amassed to GHS67.5 billion, with a significant portion attributed to the road sector. This situation underscores the fiscal difficulties faced by the government and the pressing need for financial intervention to stabilize operations.
Original Source: www.gbcghanaonline.com
