The Bank of Ghana (BoG) has debunked claims that it has financed the government to the tune of GH¢80 billion.
BoG said it did not provide credit to the government from 2017 to 2019 or 2021.
The Bank said it was only in 2020 that it issued the GH¢10 billion COVID-19 bond to the government, and another GH¢37.9 billion in 2022.
BoG said it only supported the COVID-19 Pandemic Bond in 2020, and also supported the government to pay salaries and settle government debt maturities when the capital market shut down access to Ghana in 2022.
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The BoG explained that its decision to take a 50 percent haircut on the government’s debt saved the economy from collapse and sent a positive signal to external partners.
The apex bank incurred a loss of GH¢55.12 billion in equity in 2022, largely as a result of the government’s Domestic Exchange Programme (DDEP). This was because its non-marketable holdings of government of Ghana instruments, including long-term stocks, a COVID-19 Bond and overdraft, were subjected to a 50 percent haircut.
The BoG’s other claims (holdings of marketable instruments) were also 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.
