The Bank of Ghana is seeking a GHC 53 billion bailout due to negative equity, primarily caused by significant financial losses in 2022. Finance Minister Dr. Cassiel Ato Forson highlighted the importance of this financial support during the Budget Statement presentation, emphasizing its necessity for stabilizing the economy and the central bank.
On March 11, 2025, Finance Minister Dr. Cassiel Ato Forson announced that the Bank of Ghana (BoG) is requesting a bailout of GHC 53 billion. This measure aims to stabilize the bank’s operations and addresses its concerning negative equity situation.
The minister made this announcement during the presentation of the 2025 Budget Statement in Parliament, emphasizing the necessity of the financial support. He stated, “Mr. Speaker, the Bank of Ghana is also seeking an amount of GHC 53 billion as a bailout to address the negative equity challenge it faces.”
The financial woes of the BoG are a consequence of substantial losses experienced in 2022, which accounted for a total loss of GHC 60.8 billion and led to a negative equity position of GHC 55.12 billion. These losses largely arose from impairment charges related to government securities, loans to state-owned enterprises, and fluctuations in exchange rates.
Dr. Forson reassured Parliament that securing this bailout is vital for stabilizing the financial system of Ghana. It is expected to restore confidence in the central bank and ensure the economy’s smooth operation.
In conclusion, the Bank of Ghana’s request for a GHC 53 billion bailout highlights the critical need to address its negative equity caused by previous financial losses. The anticipated support is aimed at stabilizing the banking sector and restoring public confidence, crucial for the continued health of Ghana’s economy.
Original Source: www.ghanaweb.com
