Finance Minister Dr. Cassiel Ato Forson urged the Bank of Ghana (BoG) to sell assets for recapitalization instead of using taxpayer funds. He criticized BoG’s financial management and suggested selling its new headquarters and guest houses to raise capital. Dr. Forson remains open to negotiations but insists that BoG must first demonstrate internal financial reforms.
Finance Minister Dr. Cassiel Ato Forson has firmly stated that the Bank of Ghana (BoG) must seek internal solutions to its financial difficulties, including the potential sale of assets, rather than relying on taxpayer funding for recapitalization. He highlighted that the government cannot support any bailout at this moment due to the economic constraints facing the nation.
Dr. Forson’s comments follow revelations about a Memorandum of Understanding (MoU) between BoG and the previous government for a GH¢53 billion bailout to address the bank’s financial issues. He emphasized that the government has a fiscal responsibility not to impose such a burden on taxpayers, particularly given the reported GH¢60 billion deficit associated with BoG’s unmanageable debts.
Moreover, the Minister criticized BoG’s expenditures, notably its investment in a new head office, suggesting alternative ways to alleviate financial strain. He recommended that the bank consider selling the new headquarters, allowing for a lease-back agreement to raise necessary funds, reinforcing that BoG must scrutinize its spending and operations moving forward.
In an additional effort to recoup capital, Dr. Forson proposed that BoG divest from its hotel and guest house holdings, questioning the rationale behind such operations by a central bank. He underscored that taxpayer money must not be viewed as an available resource for the bank’s challenges, as it would detract from crucial public services such as infrastructure, education, and healthcare.
While maintaining a strong position against taxpayer-funded bailouts, Dr. Forson expressed openness to discussions regarding BoG’s financial revival, contingent upon the bank’s efforts to implement significant internal reforms. He also proposed a long-term strategy for recapitalization through the gradual reinvestment of BoG’s profits over the next decade. All eyes now remain on how BoG will respond to these financial challenges without shifting the fiscal burden onto taxpayers.
In summary, Finance Minister Dr. Cassiel Ato Forson has directed the Bank of Ghana to seek internal solutions for financial rectification through asset sales and expenditure cuts, decisively ruling out taxpayer bailouts. He emphasized the importance of BoG managing its debts independently to safeguard public services. Dr. Forson remains open to negotiations, should the bank demonstrate a commitment to resolving its financial issues while prioritizing fiscal responsibility.
Original Source: www.graphic.com.gh
