BOG: 2022 loss will not affect our solvency

The Bank of Ghana has explained that although it booked a loss of GHC 60 billion for 2022, the Bank cannot be immediately declared insolvent.

In an FAQ statement to clarify the loss, the BOG stated that the loss was a result of the impairment of the holdings of marketable and non-marketable government securities of the Bank of Ghana.

The Bank argued that although the GHC billion loss hit its reserves, structures are in place to ensure the bank remains solvent.

“Based on the assessment of the external auditors and the IMF, even though BoG would have a significant negative equity based on the huge impairment from 2020, structures are in place to ensure that BoG remains solvent and is able to deliver on its primary mandate.”

The BOG indicated that it has identified key plans over a five-year period, including additional funding by the government to ensure that it remains solvent and relevant. According to the BOG, within this time frame, it is expected that the Bank will be solvent.

The bank noted, however, that the government will need to recapitalize it in the long run to enable it to stand on its own.

“Although the financial position of the bank has no immediate impact on its abilities to pursue the policies it deems appropriate, its equity and earning capacity should be high enough in the long run to ensure it is sufficiently financially independent of the government.

The BOG has come under intense public criticism after it made public its 2022 financial statements showing the unusual loss.