The Finance Minister of Ghana, Dr. Cassiel Ato Forson, opposes using taxpayer funds to bail out the Bank of Ghana’s ¢60 billion deficit. He suggests exploring internal solutions such as leasing back the Head Office and selling non-essential assets. Forson emphasizes the importance of protecting public goods and expresses readiness for discussions contingent upon the Bank’s actions.
The Finance Minister of Ghana, Dr. Cassiel Ato Forson, has firmly dismissed the notion of using taxpayer funds to address the Bank of Ghana’s reported ¢60 billion deficit, which has resulted in negative equity. During an interview on Joy News’ PM Express, he emphasized that the Bank must seek internal solutions for its requisite GHC53 billion recapitalization rather than relying on public financing. He suggested that selling their Head Office and leasing it back could be a viable option.
Dr. Forson underscored the importance of fiscal prudence, stating that the Bank should reduce expenditures and eliminate unnecessary events to manage its financial crisis effectively. He expressed skepticism about the previously agreed Memorandum of Understanding (MoU) that obligated the government to provide ¢53 billion for the recapitalization, questioning whether the government actually has sufficient funds for such an initiative.
Cautioning against the potential negative impacts on public services, Dr. Forson remarked that utilizing public funds for this purpose would deprive citizens of essential amenities such as infrastructure, schools, and hospitals. He articulated, “Giving ¢53 billion to the central bank will simply mean that we will have to deny the taxpayer some public good.”
In an effort to relieve the financial strain, Dr. Forson suggested that the Bank of Ghana consider divesting non-essential assets, including guest houses and other properties, to generate needed capital for recapitalization. He made it clear that taxpayers should not bear the financial burdens of the central bank.
Despite his firm position, Dr. Forson expressed a willingness to negotiate, contingent on the Bank taking actionable steps to rectify its financial situation. He noted, “If the central bank is able to come to me with a reasonable offer, we can have a conversation. It must start from them,” indicating a readiness for dialogue but emphasizing the necessity for the Bank to initiate these discussions.
In summary, Dr. Ato Forson firmly rejects the use of taxpayer funds to support the Bank of Ghana’s recapitalization efforts and urges the Bank to explore internal measures, including asset liquidation, to address its financial challenges. He highlights the critical need for prudent fiscal management to prevent adverse effects on public services. While open to discussions, he insists that the initiative for recovery must originate from the Bank itself.
Original Source: 3news.com
