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We won’t lend money to government any longer – Bank of Ghana

Ken Ofori Atta And Dr Ernest Addison BoG Governor And Finance Minister Finance Minister Ken Ofori-Atta and BoG Governor Dr Ernest Addison

Fri, 4 Aug 2023 Source:

The Bank of Ghana says it has resolved to commit to a zero financing to the government of Ghana henceforth.

According to the Director of Research at the apex bank, Dr Philip Abradu-Otoo the move forms part of four key steps being put in place to rescue the currently distressed Central Bank.

“Those steps that are put in place will ensure that we get out of this place quickly and if you read the governors foreword in our annual report, four steps have been outlined; one, is to try as much as possible not to lend to government again.

"Which in the IMF program we have logged that in as zero financing because it is part of the problem,” he told JoyNews in an interview.

The 2022 annual financial report of the Bank of Ghana revealed a loss of over GH¢60 billion.

Critics say the loss is largely due to excessive borrowing and financial indiscipline on the part of the government.

But speaking in the interview with Joynews, Dr Abradu-Otoo noted that BoG is currently implementing its zero financing as a way of getting the bank back on its feet.

Meanwhile, the minority in parliamentary has vehemently opposed a decision by the government to write off debts owed the Central Bank.

Addressing the media in Parliament, Minority spokesperson on Finance Isaac Adongo argued that the decision to write off the debt without a resolution from parliament breaches the Public Financial Management Act and thus is null and void.

The minority has thus demanded the government to reinstate the debt which has been accumulated by the government as a result of a Debt Exchange Program.


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