Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, has announced that taxpayer money will not be utilized to recapitalize the Bank of Ghana despite a prior MoU for a GH¢53 billion bailout. He stresses the need for the bank to find internal solutions, considering asset sales and expenditure cuts to avoid burdening taxpayers and ensuring essential public services remain funded.
Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, has declared that the government will not utilize taxpayer funds to recapitalize the Bank of Ghana (BoG). This assertion comes in light of previous commitments made by the former administration led by Ernest Addison, which had signed a memorandum of understanding for a GH¢53 billion bailout to remedy the central bank’s fiscal difficulties.
In an interview with Joy News on March 11, 2025, following the presentation of the 2025 Budget Statement to Parliament, Dr. Forson emphasized the BoG’s significant financial challenges. He articulated that any governmental rescue would exacerbate the tax burden on the populace. “I kept saying that the Bank of Ghana had generated so much debt, so much deficit. As a result, their balance sheet is not healthy, and they have generated negative equity,” he remarked.
Despite the crisis facing the BoG, Dr. Forson insisted that the bank must identify internal strategies rather than depend on public financial support. He stated, “I’ve asked the Bank of Ghana to look within and cut expenditures because the taxpayer cannot afford GH¢53 billion.”
Dr. Forson highlighted specific areas for potential savings within the BoG’s recent expenditures and assets. He urged the bank to consider selling or leasing its newfound head office and cautioned against unnecessary expenses. He reiterated, “The taxpayer cannot afford GH¢53 billion.”
He cautioned that allocating such a significant sum to assist the BoG would divert funds from critical public services, asserting, “Using GH¢53 billion to bail out the central bank would mean denying taxpayers critical public goods like roads, schools, and hospitals.”
Furthermore, Dr. Forson advocated for the BoG to divest from non-essential assets, including guest houses, recommending that proceeds from such sales be utilized for recapitalization. He urged, “The taxpayer cannot be used as a punching bag.”
While he dismissed the prospect of an immediate government bailout, Dr. Forson presented a potential long-term recovery strategy. He noted, “If the central bank is able to come to me with a reasonable offer, we can have a conversation. But it must start from them.”
Additionally, he suggested that the BoG might need to adjust its profit distribution over the next decade to aid in recapitalization.
In conclusion, Dr. Cassiel Ato Forson underscores the importance of fiscal responsibility by rejecting the use of taxpayer funds for the Bank of Ghana’s proposed GH¢53 billion bailout. He advocates for the central bank to explore internal cost-cutting measures and divest from non-essential assets. Such approaches aim to ensure that public resources remain available for vital services, reinforcing the government’s commitment to prioritizing taxpayers’ needs.
Original Source: www.ghanaweb.com
