The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has announced plans for the recapitalization of the central bank, aimed at bolstering its credibility amidst ongoing financial challenges and structural reforms.
Dr. Addison made this disclosure during a joint press conference in Accra on July 1, 2024, attended by representatives from the Ministry of Finance and the International Monetary Fund.
Speaking at the conference, Dr. Addison emphasized the necessity of recapitalization to support planned reforms outlined in a memorandum of understanding (MoU) between the Bank of Ghana and the Ministry of Finance.
The MoU, expected to be signed soon, aims to address the central bank’s financial losses, which totaled GHS 10.5 billion in 2023 and GHS 60.9 billion in 2022.
“The recapitalization of the central bank will strengthen its credibility and enable it to effectively fulfill its mandate of managing monetary policy and ensuring price stability,” Dr. Addison stated.
He highlighted the importance of steadfastness and commitment in implementing structural reforms throughout the year to restore the bank’s financial health and operational capacity.
The recapitalization plan will include determining the required capital, establishing a timeline for recapitalization, and identifying sources of funding.
Dr. Addison underscored that these measures are crucial for safeguarding the Bank of Ghana’s ability to fulfill its critical role in the nation’s economic stability.
In August 2023, Minority Leader Dr. Cassiel Ato Forson accused government of planning to impose a Bank of Ghana (BoG) recapitalization levy on Ghanaians.
He alleged that this levy is intended to shore up the central bank, which he claims is on the brink of collapse due to mismanagement.
The National Democratic Congress (NDC) demanded the immediate resignation of BoG Governor Dr. Ernest Addison and his deputies, holding them responsible for the reported GH¢60 billion losses in 2022.