Reports coming in is that the Bank of Ghana and the government have signed a memorandum of understanding (MoU) to stop monetary financing by the former to the latter.
“The MoU has been finalised and signed,” Governor Ernest Addison is quoted to told Central Banking on May 2, 2023.
The MoU is a requirement of a pending loan package agreed with the International Monetary Fund (IMF).
According to reports, the MoU will enter into force once the IMF Board approves Ghana request for a credit facility worth $3 billion.
Prior to this, Member of Parliament for Tamale South, Haruna Iddrisu, said the Minority in Parliament would oppose the signing of the MoU.
According to him, the MoU between the Bank of Ghana and the Ministry of Finance is “laughable”.
“A serious country must be run seriously and run guided by a legal framework that protects the State and protects its institution. The Bank of Ghana is in breach for having to overdraft and lend government beyond the stipulated legislation within the amended Bank of Ghana Act.
“But MoU, what is the weight of MoU within the parameters of the Ghanaian constitution and Ghanaian law?” he questioned.
Speaking with Joy News, the legislator said the Finance Minister, Ken Ofori-Atta, must be present before Parliament for legislation on zero per cent financing of government by the Bank of Ghana.
As a result, he noted that anything short of legislation passed by parliament will not be accepted.
The Bank of Ghana is said to have provided over GH₵40 billion in support to government in 2021 and according to the central bank, the funding saved the economy from collapse.