FULL TEXT: Governor Addison clears air on 2022 financial statements

The Governor of the Bank of Ghana, Dr. Ernest Addison has issued a statement on the 2022 financial statements, which noted that the central bank recorded losses of up to GH¢60.8 billion in 2022.

The Governor explained the various economic decisions that the bank had to make in the face of the economic challenges in 2022.

According to him, the BoG took some corrective measures to manage the crisis, in particular the major policy effort designed to put Ghana’s debt on a sustainable path.

These corrective actions, according to him, included the Domestic Debt Exchange (DDE) program, where the stock of Government of Ghana/public sector debt was to be halved from 105 percent of GDP to 55 percent of GDP by 2028.

"The holders of Government debt had their debt instruments exchanged for new ones with lower coupon payments and longer tenors. Despite the resulting losses incurred by households, banks, and other financial institutions, the threshold of 55 percent of GDP was not met.

"As part of the solution, the Minister for Finance wrote to the Bank of Ghana with a proposed treatment of a 50 percent haircut on Bank of Ghana’s holdings of the Government’s non-marketable debt," the governor said.

Here is the governor's full statement:

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