Bank of Ghana loses GH¢60Bn: Central Bank Rejects Accusations Of Reckless Spending And Blames DDEP For Loss

Bank of Ghana loses GH¢60Bn: Central Bank Rejects Accusations Of Reckless Spending And Blames DDEP For Loss

  • The Bank of Ghana has said claims that it lost close to GH¢60 billion in 2022 due to reckless spending are unfounded
  • Director of Research at the central bank, Dr Philip Abradu-Otoo, said if not for the DDEP, the loss would not have been recorded
  • He, however, disclosed that there are ongoing efforts to inject adequate capital into the central bank

PAY ATTENTION: Be the first to follow YEN.com.gh on Threads! Click here!

The Bank of Ghana (BoG) has fought against accusations that the GH¢60 billion loss it recorded in 2022 was due to reckless policies.

Director of research at the central bank, Dr Philip Abradu-Otoo, has rejected claims by policy analysts that because the Bank of Ghana does not operate like a commercial bank, it cannot lose money.

“We chose an action to save the economy from total collapse but as a result of the DDEP [Domestic Debt Exchange Programme], it has landed us here,” he told Citi News.

Read also

"Create, loot and share venture": Expert, NDC MPs slam Akufo-Addo's affordable housing project

The Bank of Ghana has rejected claims that it lost money in 2022 because of reckless spending.
Governor of the Bank of Ghana Dr Ernest Addison and hand holding different denominations of Ghana cedi notes. Source: Getty Images.
Source: Getty Images

Ofori-Atta's DDEP widely criticised

This is not the first time the Domestic Debt Exchange Programme (DDEP) has been criticised as poorly thought through.

PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!

The programme by Ghana's finance ministry, led by Ken Ofori-Atta, was to prevent an economic collapse due to the government's inability to pay domestic lenders.

However, the plan, described as insensitive because it eroded the investments of thousands of Ghanaians, faced fierce public resistance.

Individual bondholders, banks and other interest groups rejected the proposals under the voluntary debt exchange programme.

Commercial banks took the fall, with experts projecting that smaller banks will come out more battered than the big banks.

The BoG’s audited financial statement for 2022, released on July 28, 2023, shows that even the central bank was not spared.

Read also

"Ease burden on businesses": Economist criticises Ofori-Atta for maintaining certain taxes

The figures in the report showed that as of December 31, 2022, the total liabilities of the central bank and its subsidiaries exceeded its total assets by GH¢54.52 billion.

Subscribe to watch new videos

BoG will recover the losses

The BoG director of research disclosed that there are ongoing efforts to inject capital into the central bank.

“The central bank will have to retain its profits. We are now going to ensure that we strictly retain all our profits...we need now to move towards optimising the returns from our portfolio. We manage our funds ourselves at the Bank of Ghana," Dr Abradu-Otoo said.

Minority slams BoG for losing money

Meanwhile, YEN.com.gh reported in a related story that the Minority has said it is strange that the Bank of Ghana would lose money in the Domestic Debt Exchange Programme (DDEP).

A ranking member on the finance committee of Parliament, Isaac Adongo, said the central bank cannot undertake monetary policy without printing money.

Read also

Ofori-Atta strikes again: Minister announces ongoing plan to include GH¢29.2 bn pension funds in debt exchange

Speaking on behalf of the Minority after the 2023 mid-year budget presentation on July 31, the MP said the Bank of Ghana is broke.

New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!

Source: YEN.com.gh

George Nyavor avatar

George Nyavor (Head of Politics and Current Affairs Desk) George Nyavor writes for YEN.com.gh. He has been Head of the Politics and Current Affairs Desk since 2022. George has over 9 years of experience in managing media and communications (Myjoyonline and GhanaWeb). George is a member of the Catholic Association of Media Practitioners Ghana (CAMP-G). He obtained a BA in Communications Studies from the Ghana Institute of Journalism in 2010. Reach out to him via george.nyavor@yen.com.gh.

Online view pixel