Dr. Cassiel Ato Forson, Ghana’s Finance Minister, opposes taxpayer-funded bailouts for the Bank of Ghana, advocating for internal funding solutions and the sale of non-essential assets. He emphasizes the impact on public services if funds are diverted, expressing a willingness to discuss options if the central bank takes proactive measures.
Dr. Cassiel Ato Forson, the Finance Minister of Ghana, has emphatically opposed the use of taxpayer funds to support the Bank of Ghana (BoG), which is facing a deficit of ¢60 billion. During an interview on Joy News’ PM Express, Dr. Forson highlighted the need for BoG to seek internal measures for a ¢53 billion recapitalization rather than relying on public finances. He stated, “The taxpayer cannot afford ¢53 billion.”
Dr. Forson suggested that BoG could explore options like selling its Head Office and leasing it back, as well as reducing expenses and cutting unnecessary events. He noted the previous government’s agreement to a Memorandum of Understanding (MoU) for public funding but questioned its practicality, urging the central bank to look for internal solutions first.
Emphasizing the implications of using public funds, Dr. Forson mentioned that providing ¢53 billion to the central bank could result in the loss of essential public services such as roads and hospitals. He stated, “Giving ¢53 billion to the central bank would mean we deny the taxpayer some public good.”
In addition to leaseback options, Dr. Forson recommended that the central bank consider selling non-essential assets, like guest houses. He firmly asserted, “The taxpayer cannot be used as a punching bag.”
While maintaining his position, Dr. Forson indicated a willingness for discussions if BoG can present a reasonable proposal. He expressed confidence in the Governor’s ability to address the bank’s financial challenges effectively, stating, “I expect the Governor to look within and cut expenditure.”
In summary, Dr. Cassiel Ato Forson advocates for the Bank of Ghana to explore internal funding solutions rather than resorting to taxpayer resources for recapitalization. His proposal includes selling non-essential assets and cutting unnecessary expenditures while emphasizing the potential negative impacts on public services should public funds be utilized for the bank’s bailout. Forson remains open to dialogue if the Governor successfully addresses these financial issues.
Original Source: 3news.com
