Finance Minister Dr. Cassiel Ato Forson has ruled out taxpayer funds for the Bank of Ghana’s recapitalization, emphasizing internal solutions such as asset sales. He raised concerns over the bank’s spending priorities and noted that relying on taxpayer money would impede public services. Forson suggested a long-term strategy for BoG to reinvest profits for gradual recapitalization without burdening citizens.
Finance Minister Dr. Cassiel Ato Forson has explicitly stated that taxpayer funds will not be utilized to recapitalize the Bank of Ghana (BoG). Instead, he insists that the central bank must seek internal remedies, including asset liquidation. This position follows an agreement under the previous administration for a GH¢53 billion bailout to alleviate the bank’s financial distress.
During his interview on Joy News’ PM Express on March 11, 2025, Dr. Forson emphasized the government’s inability to support such a bailout due to existing financial deficits. He referenced prior warnings regarding the BoG’s accruing debt that has led to a negative equity scenario.
Despite acknowledging the serious financial challenges faced by BoG, Dr. Forson directed the bank to prioritize internal cost-cutting measures instead of seeking taxpayer assistance. He remarked on a Memorandum of Understanding signed by the previous administration that could have obligated taxpayers to fund the recapitalization.
Dr. Forson expressed concern about BoG’s recent expenditures, particularly its investment in a new office building, and suggested that the bank could either sell or lease back the property to generate funds. He also indicated that liquidating some of the bank’s guest houses and hotels could contribute valuable capital necessary for recapitalization.
Moreover, he cautioned that allocating such a substantial amount to the central bank could compromise essential public services, including infrastructure and healthcare. Highlighting the need for prioritization, he stated that diverting GH¢53 billion would detract from funding vital public goods.
While maintaining a firm stance on this issue, Dr. Forson did express openness to discussions should BoG propose a feasible recovery plan. Additionally, he suggested a gradual approach to recapitalization whereby BoG could reinvest its profits over a ten-year period, allowing for a sustainable financial recovery without burdening taxpayers.
The government’s clear directive to BoG underscores the expectation for the central bank to resolve its fiscal challenges independently. Stakeholders will closely monitor the bank’s forthcoming strategies in light of this mandate.
In conclusion, Finance Minister Dr. Cassiel Ato Forson’s firm refusal to utilize taxpayer funds for the Bank of Ghana’s recapitalization emphasizes the need for the central bank to explore internal solutions. By prioritizing asset sales and cutting unnecessary expenditures, the BoG must navigate its financial challenges without compromising essential public services. The proposal for a long-term reinvestment strategy further indicates a collaborative yet responsible approach to addressing the bank’s fiscal instability.
Original Source: www.graphic.com.gh
