By Francis Ntow
Accra, July 24, GNA – Government will make annual financial allocations to recapitalise the Bank of Ghana (BoG) until its equity is fully restored, Finance Minister Dr Cassiel Ato Baah Forson has announced.
Delivering the 2026 Mid‑Year Budget Review in Parliament, he said a Memorandum of Understanding had been signed to that effect.
“Going forward, government will make annual provision to recapitalise the Bank of Ghana until the Bank’s equity is fully restored, in accordance with the Bank of Ghana (Amendment) Act, 2025 (Act 1158),” he said.
Dr Forson explained that the 2023 Domestic Debt Exchange Programme (DDEP) had significantly weakened the central bank’s balance sheet, resulting in a negative net equity position.
He said the government issued a recapitalisation bond of GHS5 billion in March 2026 to strengthen the Bank’s equity base.
Dr Forson said that the Bank would undertake a comprehensive operational efficiency review to reduce costs, strengthen financial management and rebuild long‑term sustainability.
At the 131st Monetary Policy Committee briefing, Dr Johnson Pandit Asiama, BoG Governor, said the Phased Capital Restoration (2026–2032) was underway.
He explained that under the plan, government transfers of capital instruments, including non‑marketable bonds and cash injections, would restore the Bank’s equity base to positive territory by 2032.
“The initial recapitalisation support includes a GHS5 billion government allocation, with subsequent budgetary commitments planned in upcoming fiscal budgets,” he said.
Dr Asiama clarified that the negative equity position was an accounting outcome of asset write‑downs under the DDEP rather than an operational crisis, stressing that the Bank retained full policy solvency and operational capacity to execute monetary policy, regulate banks and manage inflation.
“All operational profits generated by the central bank will be retained rather than paid out as dividends to the Treasury until capital reserves are fully restored,” he assured.
Dr Asiama also maintained that the Bank would uphold a strict zero‑financing policy for government budget deficits to protect monetary credibility and prevent inflationary pressures.
In May 2026, Ruben Atoyan, IMF Mission Chief to Ghana, described the situation as “financial sector inevitable capital,” but expressed confidence in the Bank’s path to solvency.
He said the Fund had been in close discussions with Ghanaian authorities on minimising losses from the domestic bond programme and reducing associated risks.
GNA
Edited by Kenneth Sackey
Reporter: Francis Ntow