Finance Minister Dr. Cassiel Ato Forson has firmly opposed the use of taxpayer funds to recapitalise the Bank of Ghana (BoG), following revelations that the central bank had signed a memorandum of understanding (MoU) under the previous administration to receive a ¢53 billion bailout.
Speaking on *JoyNews PM Express* on Tuesday, March 11, after presenting the 2025 Budget Statement to Parliament, Dr. Forson stressed that the government could not afford such a move at this time.
“The report highlighted a ¢60 billion deficit, and as I previously pointed out as Minority Leader, the Bank of Ghana had accumulated excessive debt and deficits. Their balance sheet is weak, and they have negative equity,” he stated.
Despite BoG’s financial challenges, Dr. Forson insisted that the institution must find internal solutions rather than burdening taxpayers.
“The previous BoG administration had signed an MoU committing the government, or the taxpayer, to provide ¢53 billion for recapitalisation. I have instructed the Bank of Ghana to look inward and cut expenditures because taxpayers cannot afford this amount,” he declared.
He also questioned BoG’s spending priorities, particularly its recent large-scale investments.
“They must reassess their expenditures. Their new headquarters is a massive building—they have the option to sell and lease it back if necessary. They must also cut unnecessary spending and events. The taxpayer cannot bear this burden,” he emphasized.
Dr. Forson warned that allocating ¢53 billion to BoG would come at the expense of critical public services.
“Providing this bailout would mean sacrificing vital infrastructure—roads, schools, hospitals. Can we afford to do that? The answer is no. The central bank must find internal solutions,” he asserted.
He further suggested that BoG liquidate non-essential assets, such as hotels and guest houses, to generate funds for recapitalisation.
“Why is the Bank of Ghana in the guest house business? They should sell some of these assets and use the proceeds to recapitalise. Taxpayers cannot be used as a safety net,” he stated.
While standing firm against an immediate bailout, Dr. Forson indicated a willingness to negotiate, provided BoG takes significant internal steps to address its financial problems.
“If the central bank presents a reasonable proposal, we can have a conversation. But the initiative must come from them,” he noted.
He also proposed a long-term strategy, suggesting that BoG reinvest its profits over the next decade to rebuild its financial standing.
“They may need to retain their earnings over the next 10 years to recapitalise. That is also a viable option,” he added.
