The Bank of Ghana is requesting a GHC 53 billion bailout to stabilize its operations due to significant losses incurred in 2022, which have resulted in a negative equity of GHC 55.12 billion. This financial support is deemed crucial for restoring confidence in the central bank and maintaining financial system stability.
The Bank of Ghana (BoG) is seeking a financial bailout amounting to GHC 53 billion, as disclosed by Finance Minister Dr. Cassiel Ato Forson. This request is aimed at stabilizing the central bank’s operations and addressing its negative equity issues, highlighted during the 2025 Budget Statement presentation in Parliament on March 11, 2025.
Minister Forson specified that the necessity for this bailout arises from the financial strains the BoG has been experiencing, particularly following significant losses of GHC 60.8 billion in 2022. These losses largely stemmed from the government’s domestic debt restructuring initiatives, leading to a negative equity position of GHC 55.12 billion.
The source of these losses has been linked to impairment charges related to government securities, loans extended to state-owned enterprises, and adverse fluctuations in exchange rates. Dr. Forson reiterated the importance of the bailout, stating that it is crucial for restoring stability in Ghana’s financial system and maintaining confidence in the central bank’s operations.
The Bank of Ghana’s request for a GHC 53 billion bailout underscores the critical challenges facing the institution, particularly following substantial losses in 2022. The proposed financial support is viewed as essential for stabilizing the central bank’s operations and bolstering confidence in the nation’s financial system, thereby ensuring economic stability.
Original Source: www.ghanaweb.com
