Ministry of Finance Clarifies NDC Claims on Bank of Ghana Recapitalization.
The Ministry of Finance has countered what it labels as “misleading propaganda” propagated by the National Democratic Congress (NDC) concerning an alleged forthcoming tax designated for the recapitalization of the Bank of Ghana (BoG).
During the NDC’s Moment of Truth series on August 8, 2023, the party asserted that Ghanaians would soon bear a levy to recapitalize the central bank due to its purported collapse. Minority Leader, Cassiel Ato Forson, conveyed this message to the press.
Deputy Finance Minister, Dr. John Kumah, employed his Facebook platform to dispel these claims and encouraged the public to dismiss them as groundless propaganda.
In his post, Dr. Kumah emphasized that the allegations put forth by the opposition lacked substantiation, urging Ghanaians to refrain from entertaining baseless claims.
He pointed out that the main revenue source for the Bank of Ghana emanates from government transactions, encompassing fees and charges on government transfers, the bank’s investments in marketable instruments, and earnings from non-marketable holdings. Dr. Kumah noted that due to a decrease in government transactions and the debt restructuring, the bank’s income might have declined.
Nevertheless, Dr. Kumah reassured the public about the stability of the Bank of Ghana and its capability to fulfill its core functions. He cited Article 183 clause 2 (c) of the 1992 constitution, which tasks the Bank of Ghana with fostering economic development in the country. This aligns with the central bank’s role in supporting the state’s economic recovery endeavors.
Dr. Kumah underscored that a negative balance sheet for a central bank is not uncommon. He cited examples from global central banks like Chile, Czechia, Israel, and Mexico, which experienced periods of negative capital while maintaining financial and price stability.
Ultimately, Dr. Kumah cautioned against unwarranted attacks on the central bank, highlighting that such actions could trigger market volatility, panic selling of assets, and disrupt economic stability.