In light of recent financial decisions and their implications, Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), clarified the bank’s position. He underscored that the central bank remains well-equipped to fulfill its role as the primary lender, even without maintaining positive equity.
This statement comes following the bank’s choice to undergo a 50% reduction during the Domestic Debt Exchange Programme (DDEP). This decision led to substantial losses, subsequently affecting the bank’s capital reserves.
Given the nation’s stringent fiscal environment, the BoG recognized the immediate need for recapitalization. However, due to prevailing economic conditions, discussions and actions towards this goal are momentarily halted. The anticipation is to revisit and potentially execute these plans once Ghana experiences a more favorable economic climate.
During a recent dialogue hosted by Graphic Business on the platform Twitter (currently known as X), Dr. Richmond Atuahene, a renowned banking expert, weighed in on the matter. He emphasized the urgency of prioritizing the bank’s recapitalization as soon as the country witnesses fiscal improvements. While the current financial strains on the BoG’s balance sheet may not directly affect its ongoing functions, Dr. Atuahene warned of potential repercussions within the coming years. He strongly advocates for proactive measures, urging the government to expedite the bank’s recapitalization efforts when circumstances permit.
