By: Franklin ASARE-DONKOH
Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, has hinted that the country’s central bank, the Bank of Ghana (BoG), is seeking a bailout of GHS53 billion to address its negative equity challenge.
Presenting the 2025 Budget Statement and Economic Policy of the government on the floor of Parliament on Tuesday, March 11, 2025, Dr Forson explained the significant financial difficulties faced by Ghana’s central bank and the urgent need for a substantial bailout to stabilise its operations.
“The BoG is also seeking an amount of GHS53 billion as a bailout to be able to address the negative equity challenge they face,” Dr. Forson stated.
He also revealed that the total central government arrears amounted to GHS 67.5 billion as of December 2024, representing 5.2% of Ghana’s GDP. He noted that the road sector alone recorded arrears of GHS21 billion.
“At the end of December 2024, total central government arrears amounted to GHS67.5 billion, representing 5.2% of GDP. Mr. Speaker, with the road sector recording arrears of GHS21 billion,” Dr. Forson explained.
“The first day I assumed duty, my office was inundated with requests for payments from numerous contractors and suppliers. To ascertain the total arrears and outstanding payments for all Ministries, Departments, and Agencies (MDAs), the Ministry of Finance (MoF) formally requested information on all arrears and outstanding claims from the MDAs on January 28, 2025.
Subsequently, Mr. Speaker, the MoF held a special hearing with the MDAs to validate the arrears submitted for payment. The response from the MDAs revealed that a staggering amount of GHS67.5 billion is owed to government contractors and suppliers,” Dr. Forson explained.
The breakdown of the arrears includes GHS49.2 billion in outstanding interim payment invoices from the MDAs and GHS18.3 billion in bank transfers at the Controller and Accountant General’s Department.
The Finance Minister again noted that this GHS67.5 billion excludes $1.73 billion owed to Independent Power Producers (IPPs), GHS68 billion owed by the Electricity Company of Ghana (ECG) to contractors, GHS32 billion owed by the COCOBOD to contractors, and GHS5.75 billion owed by the Ghana Road Fund to various contractors.
