Deputy Finance Minister-designate Thomas Nyarko Ampem has dismissed calls for the government to use public funds to recapitalize the Bank of Ghana (BoG), expressing confidence that the central bank will recover its financial position without direct fiscal intervention.
Speaking before Parliament’s Appointments Committee, Ampem acknowledged the significant losses recorded by the BoG in recent years, largely due to its exposure to the Domestic Debt Exchange Programme (DDEP). The bank reported a GHC 60.8 billion loss in 2022 and an additional GHC 10 billion in 2023, bringing its negative equity to approximately GHC 66 billion.
Despite these financial setbacks, Ampem maintained that the government would not impose the burden of recapitalization on taxpayers, arguing that the BoG has the capacity to return to profitability and gradually rebuild its balance sheet.
“I have heard people suggesting that we should use public funds to recapitalize the Bank of Ghana, but in these difficult times, that may be too much of a burden on the Ghanaian taxpayer. I am just hoping and praying that this year, BoG will start making profits so they can reinvest and clear some of the negative equity,” he stated.
His remarks reinforce the government’s stance that the BoG remains solvent and capable of fulfilling its mandate despite its financial struggles. Former Governor Dr. Ernest Addison previously assured that the bank’s position would improve as economic conditions stabilize.
However, concerns persist among financial analysts and opposition parties, who argue that BoG’s weakened balance sheet could have long-term implications for Ghana’s monetary stability. While some have advocated for a recapitalization plan, the government’s current strategy focuses on allowing the central bank to recover organically through improved economic performance and operational efficiency.
The debate over BoG’s financial health remains a critical issue in Ghana’s economic discourse, with stakeholders closely monitoring the central bank’s ability to navigate its challenges without direct government intervention.
