Ghana’s Finance Minister revealed that the Bank of Ghana requires a bailout of GHS 53 billion to address its negative equity. Additionally, total central government arrears are GHS 67.5 billion, with substantial amounts owed to contractors in various sectors, particularly the road sector.
Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, announced that the Bank of Ghana (BoG) requires a bailout of approximately GHS 53 billion to rectify its negative equity situation. During the presentation of the 2025 Budget Statement on March 11, 2025, he elaborated on the severe financial challenges the central bank is currently facing and emphasized the necessity of this financial support for its operational stability.
Dr. Forson revealed that total central government arrears had reached GHS 67.5 billion by December 2024, constituting 5.2% of Ghana’s GDP. Notably, the road sector debts alone accounted for GHS 21 billion. He stated, “At the end of December 2024, total central government arrears amounted to GHS 67.5 billion.”
Upon taking office, Dr. Forson’s office received numerous payment requests from contractors and suppliers. To assess the total outstanding payments owed to Ministries, Departments, and Agencies (MDAs), the Ministry of Finance (MoF) formally requested comprehensive arrears information from the MDAs on January 28, 2025, followed by special hearings to validate submitted claims regarding these arrears.
The report from MDAs indicated that out of the GHS 67.5 billion owed, GHS 49.2 billion represents outstanding interim payment invoices, and GHS 18.3 billion is related to bank transfers at the Controller and Accountant General’s Department. Moreover, the GHS 67.5 billion does not include additional debts such as $1.73 billion owed to Independent Power Producers (IPPs) and GHS 68 billion owed by the Electricity Company of Ghana (ECG) to contractors.
In summary, Ghana’s central bank, the Bank of Ghana, is facing dire financial challenges necessitating a GHS 53 billion bailout to address its negative equity. The total government arrears have surged to GHS 67.5 billion, impacting court contractors and suppliers considerably. The comprehensive data acquired from MDAs revealed significant outstanding payments, emphasizing the urgency for financial intervention to stabilize operations across various sectors.
Original Source: www.gbcghanaonline.com
