Audio By Carbonatix
The Government has affirmed its commitment to fully recapitalising the Bank of Ghana by 2032, following the passage of the Central Bank’s amended legislation by Parliament to ensure its long-term financial stability.
Dr Cassiel Ato Baah Forson, the Finance Minister, made the disclosure at a press briefing on Friday, announcing an end to the country’s three-year US$3 billion loan supported programme with the International Monetary Fund (IMF).
He noted that the new legislation would provide the needed legal backing to the recapitalisation process, confirming the government’s close collaboration with the bank to address the institution’s negative equity position.
The Central Bank recorded an Operating Loss of GHS15.63 billion and Other Comprehensive Income (OCI) loss of GHS19.32 billion in 2025, with negative equity moving from GHS61.32 billion at the start of 2026 to GHS96.28 billion at year-end, a concern for policymakers and international partners.
The Finance Minister explained that the recapitalisation would be carried out as a gradual process, phased from the present through to 2032, in line with the government supporting the central bank to fulfil its core mandate of price stability.
“The government is committed to fully capitalise the central bank. It’s a gradual process from now to 2023. In the new amendment, we have also introduced automatic recapitalisation.”
“ What It means is that if anytime the central bank falls below its minimum capital, the central government automatically capitalise the central bank.”
He gave the government’s assurance of not being complacent about the situation, emphasising that restoring the Bank of Ghana to full financial health was a priority with the new legislation providing credible roadmap for resolving its capital deficit.
Mr Ruben Atoyan, IMF Mission Chief to Ghana, described the central bank’s financial situation as a case of “financial sector inevitable capital,” but expressed confidence about the institution’s path to solvency.
He described the bank’s financial condition in 2025 as “challenging,” citing high open market operation costs resulting from a tight monetary policy stance, elevated interest rates, and aggressive liquidity mopping exercises.
He noted that exchange rate movements also exerted pressure on the central bank’s financial position during the period, expressing confidence that the recapitalisation target of 2032 was achievable.
Mr Atoyan said the Fund had factored the recapitalisation trajectory into its debt sustainability analysis, indicating its support for the bank to sell some of its gold holdings at the end of 2025 to strengthen the balance sheet.
He said the Fund had been in close discussions with the Ghanaian authorities on how to minimise losses from the domestic bond programme and reduce associated risks going forward, with further reporting expected in the staff report.
Mr Atoyan expressed confidence in the direction of Ghana’s economic management, describing the combination of fiscal consolidation, debt sustainability improvements, and the Bank of Ghana recapitalisation framework as the foundation of a credible and durable recovery.
The IMF Division Chief encouraged the Ghanaian authorities to remain vigilant, staying the course on reforms, and continuing the work of building an economy resilient enough to withstand future volatility without requiring another financial bailout.
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