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Recapitalising Bank of Ghana is Ultimately Our Burden – Ato Forson

Minority Leader Dr. Casiel Ato Forson says Ghanaians ought to be worried about the fiscal mismanagement of the Bank of Ghana (BoG).

According to him, the $60 billion impairment of the central bank will ultimately become the burden of the ordinary taxpayer as the bank would need to be recapitalised in order to function as it should.

He said, currently, the Bank of Ghana is insolvent and “exists merely in name under the leadership of Governor Addison and his deputies.”

Speaking at the ongoing Arise Ghana forum where thought leaders in the financial space are discussing the insolvency of the Bank of Ghana and how that happened, Dr Forson mentioned “It will take more than 20 years for the Bank of Ghana to move to positive equity” if it manages to retain a profit inflow of  GH₵1.5 billion annually.

“This means the fate of Bank of Ghana hangs solely in the ability of a government that is itself bankrupt to recapitalise it,” he said.

He stated that following the crisis, the Minority’s analyses of the situation have produced only three avenues to get the Bank of Ghana out of its predicament.

These are;

“i. Introduce a tax to recapitalise the Bank of Ghana. (Bank of Ghana recapitalisation Levy); or

“ii. Divert proceeds of an existing Tax to recapitalize the Bank of Ghana and therefore forgo critical Government expenditures in education, health and roads; or

“iii. This Government which has borrowed more than all Governments combined in the history of Ghana may have to borrow another $6 billion to fill this crater at the Bank of Ghana,” he outlined.

He stressed that the conduct of the government and the governors of the Bank of Ghana leading to this fiscal whirlpool is “incredible, shocking and irredeemable.”

“The outlook for our country still looks grim, notwithstanding the sacrifices of the ordinary Ghanaian. This Bawumia-led economic mismanagement team should be apologizing to the people of Ghana for destroying livelihoods, our country and our motherland,” he added.

Source : Joy Online