The Bank of Ghana (BoG) has dismissed allegations that the GH¢60 billion losses incurred in 2022 were due to recklessness.
Dr. Philip Abradu-Otoo, the Director of Research at BoG, emphasized that the current figures on BoG’s balance sheets were not a result of imprudent policies or poor decisions, but rather a direct consequence of the Domestic Debt Exchange Program (DDEP).
He acknowledged that the bank’s policy choices may have been suboptimal, driven by the need to salvage the economy from potential collapse, but the subsequent impact of the DDEP led to the present situation.
Dr. Abradu-Otoo made these statements during an interview with Umaru Sanda Amadu on the Eyewitness News.
The BoG’s audited financial statement for 2022, released on July 28, 2023, revealed that the total liabilities of the central bank and its subsidiaries exceeded their total assets by GH¢54.52 billion as of December 31, 2022. Dr. Philip Abradu-Otoo attributed these losses to the government’s efforts in restructuring domestic debt and the devaluation of the local currency, among other factors.
Regarding plans to recover these losses, Dr. Abradu-Otoo outlined measures to ensure the retention of the central bank’s profits. He revealed ongoing discussions with the government to infuse capital into the central bank.
Dr. Abradu-Otoo pointed out that the BoG has not received capital injection from the government since the 1960s and highlighted its importance for the bank’s operation. He expressed confidence in the bank’s commitment to restoring its financial position, aiming for a turnaround within the next five to six years.
“We are dedicated to the recovery process, and we anticipate that this situation will reverse within a span of five to six years,” remarked Dr. Philip Abradu-Otoo.
Source – citinewsroom.com
