GHANA’S government has ruled out providing a $4bn bailout to recapitalise the Bank of Ghana (BoG), warning that using taxpayer funds to cover the central bank’s financial shortfall would jeopardise vital public services. Finance Minister Cassiel Ato Forson made the announcement during an exclusive interview aired by JoyNews TV earlier this week.
The BoG is facing a negative equity position of approximately 60 billion Ghana cedis, equivalent to $4.5bn. Despite a formal request for a 53 billion cedis ($4bn) bailout to address the crisis, the government has decided against using state funds to cover the bank’s losses.
No public funds to bail out the central bank
Forson made it clear that the government would not allocate public funds to recapitalise the central bank. He emphasised that doing so would come at the expense of essential services such as infrastructure, healthcare, and education.
‘I have asked the Bank of Ghana to look within and cut expenditure because the taxpayer cannot afford 53 billion cedis, which is about $4bn,’ Forson told JoyNews TV. ‘Giving that amount to the central bank would mean we would have to deny the taxpayer some public good—like roads, schools, and hospitals. Is that what we want? Can we afford it? The answer is no.’
Urging BoG to sell assets and cut costs
Forson advised the BoG to raise funds independently by selling or leasing back non-essential assets, including its recently constructed head office, guest houses, and hotels.
‘They have a choice: they can sell and lease back if they want to,’ he said. ‘They have hotels and guest houses. Why are they in guest houses? Can they sell some of them and use the money to recapitalise? The taxpayer cannot be used as a punch bag.’
The finance minister added that BoG Governor Johnson P. Asiama is aligned with the government’s approach and is committed to implementing cost-cutting measures to help stabilise the bank’s finances.
Reinvesting profits for long-term stability
As a long-term solution, Forson proposed that the central bank reinvest its profits over the next decade to rebuild its capital base.
‘They may also have to consider ploughing back their profit over the next 10 years to recapitalise,’ he suggested. ‘But any discussion must start from them. If they bring a reasonable offer, we can have a conversation.’
BoG can continue despite negative equity
Despite the central bank’s financial challenges, Forson dismissed concerns about its ability to function under negative equity.
‘It is not a problem. The bank can survive,’ he asserted. ‘All over the world, you’ve seen some central banks survive with negative equity. It’s not out of order—they can do that.’
Fiscal constraints prioritise public services
The finance minister stressed that any bailout for the Bank of Ghana would severely limit the government’s capacity to fund critical development projects.
‘Giving 53 billion cedis ($4 billion) to the central bank would mean sacrificing essential public investments—like roads, schools, and hospitals,’ he reiterated.
Background on BoG’s losses
The BoG’s financial difficulties originated during the previous administration, which had signed a memorandum of understanding to recapitalise the bank. However, Forson insists that Ghana’s current fiscal situation makes such an undertaking impossible without serious consequences for public services and infrastructure development.
The Bank of Ghana was contacted for comment on the situation but has not yet issued a response.
