Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, announced that taxpayer money will not be used to recapitalize the Bank of Ghana amid its financial troubles, stemming from a GH¢53 billion bailout proposal by the former administration. He urged the BoG to explore internal solutions, implement cost-cutting measures, and sell non-essential assets to improve its financial situation, emphasizing the importance of safeguarding public resources.
Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, declared the government will not utilize taxpayer funds to recapitalize the Bank of Ghana (BoG). This announcement comes after it was revealed that the previous administration entered into a memorandum of understanding (MoU) for a GH¢53 billion bailout aimed at mitigating the financial difficulties facing the central bank.
In an interview with Joy News on March 11, 2025, following his presentation of the 2025 Budget Statement to Parliament, Dr. Forson pointed out the BoG’s significant financial issues, emphasizing that any governmental financial assistance would impose an additional burden on taxpayers. He remarked, “On the back of the report that showed the GH¢60 billion hole…the Bank of Ghana had generated so much debt, so much deficit.”
Despite the ongoing financial predicament of the BoG, Dr. Forson maintained that the institution should seek internal remedies rather than depend on public finances. He noted the necessity for the BoG to evaluate its expenditures and assets thoroughly, specifically stating, “I’ve asked the Bank of Ghana to look within and cut expenditures because the taxpayer cannot afford GH¢53 billion.”
Furthermore, he identified potential cost-saving measures in the BoG’s expenditures, including its new headquarters. Dr. Forson encouraged the central bank to consider selling or leasing back its new head office to alleviate financial strain. He reiterated, “The taxpayer cannot afford GH¢53 billion.”
Dr. Forson cautioned against using such a large sum for the BoG, highlighting that it would detract from essential public services such as infrastructure, education, and healthcare. He asserted, “Using GH¢53 billion to bail out the central bank would mean denying taxpayers critical public goods…the answer is no.”
Moreover, he urged the BoG to liquidate non-essential assets to enhance their financial situation, suggesting they sell their guesthouses to raise capital. “The taxpayer cannot be used as a punching bag,” he remarked.
While dismissing the likelihood of an immediate government bailout, Dr. Forson proposed a long-term strategy for the BoG, indicating that if the central bank could present a reasonable proposal, discussions could ensue. He further suggested, “They may have to consider winding back their profit over the next 10 years to recapitalize.”
In conclusion, Minister of Finance Dr. Ato Forson has clearly stated that taxpayer funds will not be employed to support the Bank of Ghana, which is struggling financially. He advocates for the BoG to initiate internal cost-cutting measures to address its fiscal challenges while firmly opposing the proposed GH¢53 billion bailout as unsustainable and detrimental to public services. His call for financial prudence and strategic asset liquidation underscores a commitment to responsible governance and fiscal accountability in the face of financial adversity.
Original Source: www.ghanaweb.com
