Impairment losses for 2022 due to government’s DDEP, COCOBOD loans - BoG

The Bank of Ghana has said the impairment losses recorded in its 2022 Audited Financial Report are due to the government’s Domestic Debt Exchange Programme and COCOBOD-related loans.

Director of Research at the Central Bank, Dr Philip Abradu-Otoo, explained that some three items consisting of marketable instruments, non-marketable instruments, and COCOBOD loans accounted for about GH¢53.1 billion out of the GH¢60 billion loss recorded.

“Out of the GH¢60 billion we made, these three items contributed to the impairment losses which is about 90 percent of the total losses coming from government’s DDEP.”

“Will we have a domestic debt exchange impacting on our balance sheet next year [2023]? Emphatic no! it’s not happening again,” Dr Abradu-Otoo stressed.

The Bank of Ghana has in the last few days come under criticism for recording huge losses on the back of government's domestic debt restructuring exercise, depreciation of the local currency and other factors.

The loss by the Central Bank depicts a rather concerning contrast to the profit of GH¢1.23 billion recorded in 2021.

According to the BoG audited financial report for 2022, it recorded total liabilities exceeding its total assets by GH¢54.52 billion as of December 31, 2022

MA/NOQ

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