Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, announced that the government will not allocate taxpayer money for a GH¢53 billion bailout of the Bank of Ghana. He urged the bank to explore internal measures and cost-cutting strategies, emphasizing that such expenditure would detract from essential public services. Forson proposed that the BoG should sell non-essential assets to recover funds as an alternative financial strategy.
Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, has made it clear that the government will not utilize taxpayer funds for the GH¢53 billion bailout of the Bank of Ghana (BoG). This statement follows the revelation that the previous administration signed a memorandum of understanding (MoU) to address the central bank’s financial difficulties. The Minister underscored that any government financial intervention would impose an additional burden on taxpayers.
In a recent interview with Joy News, after presenting the 2025 Budget Statement, Dr. Forson discussed the BoG’s serious financial issues. He stated the bank is grappling with substantial debt and deficits, leading to a deteriorating balance sheet and negative equity. He argued that financial solutions must come from within the BoG rather than relying on public financing.
Dr. Forson highlighted the need for the BoG to assess its expenditures and assets for possible cost-cutting measures. He referenced the new, large head office of the BoG, indicating that the bank could either sell it or lease it back to alleviate financial pressures. He reasserted that the public cannot bear the financial load of GH¢53 billion.
Moreover, he cautioned that allocating such a significant amount for the central bank bailout would compromise funding for essential public services. He emphasized that using taxpayer funds in this manner would jeopardize critical services such as healthcare, education, and infrastructure, asserting that the BoG needs to seek internal alternatives for financial recuperation.
Finally, Dr. Forson recommended that the BoG divest from non-essential assets to generate necessary revenue. He questioned the bank’s engagement in the guest house business and suggested selling these assets for recapitalization. While he dismissed an immediate government bailout, he indicated openness to discussion if the BoG presents a feasible plan for financial recovery over the next decade.
In conclusion, Dr. Cassiel Ato Forson firmly opposes utilizing taxpayer money for the Bank of Ghana’s proposed GH¢53 billion bailout. His emphasis lies on the necessity for the Bank to identify internal solutions, reassess its expenditures, and divest from non-essential assets to navigate its fiscal challenges. The Minister’s statements highlight his commitment to protecting public funds and prioritizing essential services for citizens over financial relief for the central bank.
Original Source: www.ghanaweb.com
