The Minority Leader Dr Cassiel Ato Forson has accused the Bank of Ghana (BoG) of recklessness leading to a recapitalise. His comment came after the Governor of the Bank of Ghana, Dr Ernest Addison, justified the quest to recapitalize the central bank. Dr Addison said the move will bolster their credibility in undertaking reforms planned
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The Minority Leader Dr Cassiel Ato Forson has accused the Bank of Ghana (BoG) of recklessness leading to a recapitalise.
His comment came after the Governor of the Bank of Ghana, Dr Ernest Addison, justified the quest to recapitalize the central bank.
Dr Addison said the move will bolster their credibility in undertaking reforms planned under a memorandum of understanding his outfit will sign with the Ministry of Finance.
He said this at a joint press conference by the Ministry of Finance, International Monetary Fund and the Bank of Ghana in Accra on July 1, 2024.
“Steadfastness and commitment will be needed from now to the end of the year to see through all the structural reforms envisaged under the programme, including the signing of Memorandum of Understanding (MoU) between the Ministry of Finance and the Bank of Ghana on the recapitalization of the central bank. This will strengthen the central bank’s credibility to effectively deliver on its reforms,” he explained.
In June, 2024, the central bank announced plans to sign the MoU following its significant losses for two consecutive years.
The MoU is a strategic move to help restore the financial health of the central bank and drive its positive equity position after it posted a GHS 10.5 billion loss in 2023 due to high expenditure related to monetary interventions and a GHS 60.9 billion loss in 2022 over impairments during the domestic debt exchange programme.
The Ministry of Finance and the Bank of Ghana will sign the MoU to ensure that the Central Bank can continue with its mandate of managing monetary policy and ensuring price stability.
The recapitalization plan will look at the capital required, the timeline for recapitalization and more importantly, the sources of funding.
Commenting on this on his X platform, Dr Ato Forson said “Friends, I warned earlier that we would bear the brunt of the irresponsibility and recklessness of this Central Bank, and now the chickens are coming home to roost!”
The post Recapitalisation of Bank of Ghana: The chickens are coming home to roost – Ato Forson first appeared on 3News.