Finance Minister, Dr. Cassiel Ato Forson has advised the Bank of Ghana (BoG) to explore internal cost-cutting measures instead of relying on taxpayer funds for a GH₵53 billion bailout to address its negative equity position.
According to him, the government cannot afford to allocate such a huge sum to recapitalise the central bank at the expense of critical public services like roads, schools, and hospitals.
“I have asked the Bank of Ghana to look within and cut expenditure because the taxpayer cannot afford 53 billion Ghana cedis. I have communicated that to the governor,” Dr. Forson stated.
Speaking on JoyNews’ PM Express on Tuesday, March 11, he suggested that the BoG explore alternative means of generating funds, including selling or leasing back its assets such as its newly built head office, hotels, and guest houses.
“We have seen their new head office, a very big building—they have a choice, a choice to sell and lease back if they want to. They have to look within and cut expenditure,” he suggested.
He revealed that the request for government support stems from a Memorandum of Understanding signed by the previous administration, committing taxpayers to recapitalise the BoG.
However, he stressed that the central bank must first exhaust all internal options.
“The taxpayer cannot be used as a punching bag,” he said, adding that the BoG could also consider reinvesting its profits over the next decade to restore financial stability.
When asked if the government would consider meeting the BoG halfway should they present a reasonable proposal, Dr. Forson said, “If the central bank can come to me with a reasonable offer, we can have a conversation, but it must start from them.
“I have also said that they may also consider ploughing back their profit over the next 10 years to recapitalise. That can also be done.”
Despite concerns about the bank’s financial state, he dismissed fears about its survival.
“It is not a problem; the bank can survive. What they need to do is, as soon as possible, generate enough cash to be able to run the affairs of the bank, which I believe they are doing,” he assured.
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