By Jibril Abdul Mumuni, GNA
Accra, May 1, GNA – The Bank of Ghana (BoG) recorded a negative equity position at the end of 2025, largely due to losses arising from the Domestic Debt Exchange Programme (DDEP) and monetary policy operations over the period, the Financial Report disclosed.
The Bank and its subsidiaries posted a negative equity of GH¢93.82 billion as at December 31, 2025, compared with GH¢58.62 billion in 2024, the Financial Report of the Bank for 2025 by the Directors to the Minister of Finance noted.
The report explained that the negative equity stemmed mainly from the restructuring of domestic government securities under the DDEP, which significantly impaired the value of the Central Bank’s securities portfolio.
“The Bank of Ghana recorded negative equity as a consequence of the Domestic Debt Restructuring under the Domestic Debt Exchange Programme on its securities portfolio and the monetary policy operations of 2024 and 2025,” the report said.
Despite the deficit position, the report indicated that the financial statements for 2025 were prepared on a going concern basis, noting that measures were underway to restore the Bank’s capital position over the medium term.
The Government had acknowledged its obligation to recapitalise the Bank in accordance with the Bank of Ghana Act, 2002 (Act 612), as amended, and confirmed that a memorandum of understanding had been signed between the Ministry of Finance and the Bank on January 6, 2025.
Under the agreement, a phased recapitalisation programme covering the period 2026 to 2032 has been adopted, during which the Government will transfer financial instruments and/or cash to the Bank in tranches to rebuild its equity base.
“The objective is to restore equity to a level commensurate with the Bank’s risk profile and operational mandate,” the report said.
It added that based on medium-term macroeconomic projections, improvements in net interest income, moderation in interest expenses and a return to profitability were expected to support a gradual restoration of the Bank’s cumulative reserves.
The report projected that the combined effect of recapitalisation inflows and improved earnings could result in positive net equity by 2032, alongside the rebuilding of general reserves to prudent buffer levels.
Notwithstanding the current negative equity position, the assessment of the Bank’s operations showed no reason to doubt its ability to continue as a going concern over the medium term, it said.
They further expressed confidence that sustained macroeconomic stability, easing inflation and improved external sector conditions would enhance the Bank’s financial performance in the coming years.
GNA
Edited by Agnes Boye-Doe