Gov’t Rules Out Taxpayer-Funded Bailout for BoG – Ato Forson

Finance Minister Dr. Cassiel Ato Forson has made it clear that the government will not use taxpayer funds to recapitalise the Bank of Ghana (BoG), despite revelations that the central bank had signed a memorandum of understanding (MoU) under the previous Ernest Addison-led administration for a ¢53 billion bailout.

Speaking on Joy News on Tuesday, March 11, after presenting the 2025 Budget Statement to Parliament, Dr. Forson highlighted the BoG’s financial distress but ruled out any government intervention that would impose an additional burden on taxpayers.

“In my previous role as the Minority Leader, I consistently pointed out that the Bank of Ghana had accumulated significant debt and deficits, leading to an unhealthy balance sheet and negative equity,” he stated.

Despite BoG’s financial struggles, Dr. Forson insisted that the institution must find internal solutions rather than relying on public funds.

“The previous BoG administration had signed an MoU committing the government to recapitalise the central bank with ¢53 billion. However, I have instructed the Bank of Ghana to explore internal cost-cutting measures because taxpayers cannot bear this burden,” he said.

He pointed to BoG’s recent expenditures, including its new headquarters, as areas where financial restructuring could take place.

“They must evaluate their spending. Their new head office, a massive building, could be sold and leased back if necessary. They also need to cut down on unnecessary expenses and reduce events. The taxpayer cannot afford ¢53 billion,” he stressed.

Dr. Forson further cautioned that allocating such a large sum to BoG would mean sacrificing essential public services.

“Providing ¢53 billion to the central bank would come at the cost of vital infrastructure—roads, schools, hospitals. Is that a trade-off we can afford? The answer is no. The central bank must find internal solutions,” he asserted.

He also suggested that BoG sell off non-essential assets, such as hotels and guest houses, to generate funds for recapitalisation.

“Why is BoG in the guest house business? They should sell some of these assets and use the revenue to strengthen their finances. Taxpayers cannot be used as a safety net,” he stated.

While ruling out an immediate bailout, Dr. Forson proposed a long-term strategy for BoG to rebuild its financial position.

“If the central bank presents a reasonable plan, we can discuss it. However, the initiative must come from them,” he noted.

“They may also need to reinvest their profits over the next decade to restore their financial health. That is another viable option,” he added.