Finance Minister rules out Gov’t funding to recapitalise BoG

Finance Minister Dr. Cassiel Ato Forson has categorically ruled out any immediate government intervention to recapitalise the Bank of Ghana (BoG), insisting that the central bank must explore internal cost-cutting measures to address its negative equity position.

Speaking to Joy News on Tuesday evening following the presentation of the 2025 Budget Statement, Dr. Forson emphasized that the government cannot afford to provide the estimated GHC 53 billion required to restore the BoG’s financial health.

“On the back of the report that showed the ¢60 billion hole, remember, in my previous life as the Minority Leader, I kept saying that the Bank of Ghana had generated so much debt, so much deficit.”

“As a result, their balance sheet is not healthy, and they have generated negative equity,” Dr. Forson stated.

The BoG had earlier justified its negative equity position—estimated at about GHC 60.8 billion—by citing the losses it incurred from the Domestic Debt Exchange Programme (DDEP), the government-led initiative that sought to restructure Ghana’s debt in line with International Monetary Fund (IMF) support requirements.

The central bank had previously signed a Memorandum of Understanding (MoU) under which the government was expected to recapitalise it with GHC 53 billion. However, Dr. Forson firmly rejected that arrangement, arguing that the taxpayer cannot bear such a burden.

“I’ve asked the Bank of Ghana to look within, cut expenditure because the taxpayer cannot afford ¢53 billion,” he stressed. “First of all, they have to look within. You know, you’ve seen their new head office, a very big building. They have a choice—a choice to sell and lease back if they want. They have to look within and cut expenditure and reduce events. The taxpayer cannot afford ¢53 billion.”

Dr. Forson underscored the tough choices facing the government, cautioning that allocating such a significant sum to the BoG would come at the cost of critical public infrastructure projects such as roads, schools, and hospitals.

“Giving ¢53 billion to the central bank will simply mean that we will have to deny the taxpayer some public good, like roads, like schools, like hospitals. Is that what we want? Can we afford it? At this stage, the answer is no. We cannot afford that. And so the central bank must look within.”

He further advised the BoG to explore divesting its non-core assets, including guest houses and hotels, as a means of generating capital. “They have hotels, like guest houses and others. Why are they in the guest house business? They should sell some of them and use the money to recapitalise. The taxpayer cannot be used as a punching bag.”

The finance minister left the door open for potential discussions but insisted that any proposal must be initiated by the central bank.

He also suggested a longer-term approach, proposing that the BoG could reinvest its profits over the next decade to restore its capital position.

The Bank of Ghana has recently faced scrutiny over the financing of its new headquarters, estimated at $250 million.

Addressing Parliament last week, newly appointed Governor Dr. Johnson Asiama stated that a firm had been contracted to conduct a value-for-money audit on the project.