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The Bank of Ghana (BoG) has debunked claims that it has financed the government to the tune of GH¢80 billion. The bank stated that it did not provide credit to the government from 2017 to 2019. The Bank said that it issued GH¢10 billion COVID-19 bonds to the government in 2020, while also issuing another GH¢37.9 billion in 2022.
The Bank of Ghana (BoG) has debunked claims that it has financed the government to the tune of GH¢80 billion. The bank stated that it did not provide credit to the government from 2017 to 2019. The Bank said that it issued GH¢10 billion COVID-19 bonds to the government in 2020, while also issuing another GH¢37.9 billion in 2022.
BoG only supported the COVID-19 Pandemic Bond in 2020 and also supported the government to pay salaries and settle government debt maturities as the capital market shut down access to Ghana in 2022. The BoG further explained that its decision to take a 50 per cent haircut on the government’s debt saved the economy from collapse and sent a positive signal to external partners.
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It incurred a loss of GH¢55.12 billion in equity in 2022, largely as a result of the government’s Domestic Exchange Programme (DDEP) after its non-marketable holdings of the government of Ghana instruments, including long-term stocks, a COVID-19 Bond and overdraft, which were subjected to a 50 per cent haircut. Also, the Bank’s other claims (holdings of marketable instruments) were exchanged under similar terms as other financial institutions under the DDEP, leading to an impairment of GH¢48.40 billion in 2022.
The central bank assured the public that it remained financially stable and was adhering to high standards of management and transparency.
