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Finance Minister Ato Forson: ‘Taxpayer Cannot Afford ₵53 Billion for BoG’
Finance Minister Dr. Cassiel Ato Forson has made it clear that the government will not use taxpayer money to recapitalise the Bank of Ghana (BoG), following reports of a ₵53 billion bailout agreement signed under the previous administration.
Speaking on Joy News’ PM Express on March 11, Dr. Forson insisted that BoG must find internal solutions to its financial crisis rather than relying on public funds.
“On the back of the report that showed the ₵60 billion hole, remember, in my previous life as the Minority Leader, 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.”
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“Apparently, the previous administration in the Bank of Ghana had signed an MoU for the Government of Ghana, or the taxpayer, to recapitalise the central bank with ₵53 billion. I’ve asked the Bank of Ghana to look within and cut expenditure because the taxpayer cannot afford ₵53 billion.”
Dr. Forson questioned BoG’s spending priorities, particularly its recent infrastructure investments.
“First of all, they have to look within. You know, you’ve seen their new head office, a very big building. They have a choice—a choice to sell and lease back if they want. They have to look within and cut expenditure and reduce events. The taxpayer cannot afford ₵53 billion.”
The finance minister warned that allocating such a large sum to BoG would deprive the country of critical infrastructure.
“Giving ₵53 billion to the central bank will simply mean that we will have to deny the taxpayer some public good, like roads, like schools, like hospitals. Is that what we want? Can we afford it? At this stage, the answer is no. We cannot afford that. And so the central bank must look within.”
He also criticised BoG’s non-core assets, suggesting that they should be sold to raise funds.
“They have hotels, like guest houses and others. Why are they in the guest house business? They should sell some of them and use the money to recapitalise. The taxpayer cannot be used as a punching bag.”
Despite his firm position, Dr. Forson hinted at potential negotiations, provided that BoG takes responsibility for its finances.
“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.”
He also suggested a gradual recapitalisation approach.
“I have also said that they may have to consider winding back their profit over the next 10 years to recapitalise. That can also be done.”
Dr. Forson’s comments underscore the government’s determination to prioritise public spending while urging BoG to implement cost-cutting measures.
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