BoG's GH¢60.8 billion impairment is a technical loss – Ofori-Atta explains

The Bank of Ghana (BoG) incurred a loss of GH¢60.8 billion billion from its audited financial statement for the 2022 fiscal year. This loss according to the BoG is largely due to the government’s debt restructuring activities.

Speaking on GBC’s Talking Point programme, the Finance Minister affirmed the claims made by the central bank.

“You can call it a sort of technical losses. It is not monies that was given that will never be paid”, he said.

“The issue of debt exchange in which certain interest were expected to be paid had been cut, resulting in those type of losses. Then you’ll have to impair the balance sheet because of expected revenue that was coming that will not come so that is what is happening”, he further explained.

The Finance Minister, however, expressed confidence in BoG’s ability to reclaim all its losses.

“As I told you, the impairment on the banks was also quite dramatic. The first half year, we have seen a strong response from them. It’s the same way in which the balance sheet of restructuring is also occurring at the Central Bank and will build up towards reclaiming where we should be”, he concluded.