Finance Minister Dr. Cassiel Ato Forson rejected calls for taxpayer funds to bail out the Bank of Ghana, urging the Bank to seek internal solutions for its ¢53 billion recapitalization. Forson suggested leasing back assets and cutting costs, warning that public funds should not compromise the provision of necessary infrastructure and services.
Dr. Cassiel Ato Forson, the Finance Minister of Ghana, has dismissed the notion of utilizing taxpayer money for the Bank of Ghana (BoG) amid its reported ¢60 billion deficit, which has led to negative equity. On Joy News’ PM Express, he emphasized that BoG must explore internal solutions for the necessary ¢53 billion recapitalization, instead of seeking public funds.
Dr. Forson outlined the Bank’s potential options, including leasing back its newly built Head Office. He urged the central bank to implement cost-cutting measures and minimize expenditures. “The taxpayer cannot afford ¢53 billion,” he remarked, insisting that the focus should be on internal resource management.
The Finance Minister referenced an existing Memorandum of Understanding (MoU) that anticipates government funding for the recapitalization but questioned its viability amidst fiscal constraints. He pointedly asked, “Do you have the money?” as he pressed the importance of BoG looking within itself for solutions.
Dr. Forson articulated that utilizing public funds for the bank would result in a sacrifice of essential public infrastructure, stating, “Giving ¢53 billion to the central bank will simply mean that we will have to deny the taxpayer some public good.” Hence, he believes that the focus should not be on burdening the taxpayer.
He also proposed that the central bank could sell non-essential assets, like guest houses, to generate funds for recapitalization. “The taxpayer cannot be used as a punching bag,” he stated, reinforcing his argument against a public bailout.
While maintaining his firm stance, Dr. Forson expressed a willingness to engage in discussions provided BoG takes the necessary steps to address its financial challenges. He noted, “If the central bank is able to come to me with a reasonable offer, we can have a conversation.”
The Finance Minister, Dr. Cassiel Ato Forson, emphasizes the necessity for the Bank of Ghana to seek internal solutions to its financial difficulties, specifically suggesting options like leasing back assets and selling non-essential properties. He firmly rejects the idea of a taxpayer bailout, asserting the importance of prioritizing public infrastructure and services. His readiness for negotiation hinges on BoG’s initiative in resolving its own financial issues.
Original Source: 3news.com
