Ghana’s Finance Minister revealed that the Bank of Ghana needs a GHS53 billion bailout to handle financial difficulties. Central government arrears total GHS67.5 billion, with notable debts in the road sector. The Ministry of Finance is working to assess and validate these arrears comprehensively.
Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, announced that the Bank of Ghana (BoG) is in urgent need of a GHS53 billion bailout to resolve its negative equity issue. This statement was made during the presentation of the government’s 2025 Budget Statement on March 11, 2025. Dr. Forson underscored the critical financial challenges faced by the central bank that necessitate this substantial financial support.
In addition, Dr. Forson disclosed that as of December 2024, the total arrears of the central government reached GHS67.5 billion, which accounts for 5.2% of Ghana’s Gross Domestic Product (GDP). He indicated that the road sector is particularly affected, with arrears amounting to GHS21 billion, emphasizing the dire fiscal situation confronting the nation.
Upon taking office, Dr. Forson stated that his office was overwhelmed with payment requests from numerous contractors and suppliers. In response, the Ministry of Finance (MoF) initiated a request on January 28, 2025, seeking comprehensive information about all arrears from the Ministries, Departments, and Agencies (MDAs). A special hearing was later convened to validate the reported arrears.
The total arrears discovered amounted to GHS67.5 billion, divided into GHS49.2 billion in outstanding interim payment invoices and GHS18.3 billion regarding bank transfers recorded by the Controller and Accountant General’s Department. Furthermore, Dr. Forson elucidated that this total does not account for significant debts owed to various stakeholders, including $1.73 billion to Independent Power Producers (IPPs) and GHS68 billion owed by the Electricity Company of Ghana (ECG).
In summary, Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, has highlighted a critical financial crisis facing the Bank of Ghana, requiring a GHS53 billion bailout to manage negative equity. Additionally, the country’s central government is grappling with GHS67.5 billion in arrears, significantly impacting various sectors, particularly the road sector. The Ministry of Finance is addressing this issue through rigorous assessments and validations of outstanding claims.
Original Source: www.gbcghanaonline.com
