Bank Of Ghana Troubles: Deputy Finance Minister Denies Claim Of New Tax To Support Central Bank

Bank Of Ghana Troubles: Deputy Finance Minister Denies Claim Of New Tax To Support Central Bank

  • A deputy finance minister, John Kumah, has rubbished claims that government plans to introduce a tax to support the Bank of Ghana
  • The deputy minister described the claims that came from the Minority in Parliament as needless propaganda
  • Kumah insisted that the Bank of Ghana was capable of fulfilling its mandate despite its GH¢60 billion losses

A deputy finance minister, John Kumah, has denied claims by the Minority in Parliament that the government plans to introduce a levy to support the Bank of Ghana.

Kumah described the claims from the Minority as unnecessary propaganda.

John Kumah on BoG
Deputy finance minister John Kumah (L) and BoG governor Ernest Addison (R). Source/Facebook/@JohnAmpontuahKumah/@BankOfGhana
Source: Facebook

In a post on Facebook, the deputy minister also stressed that the BoG has not collapsed.

"The main source of income to the Bank is from government transactions i.e. fees and charges on all government transfers, the bank's investments in marketable instruments and also earnings from non-marketable holdings of the Bank," he explained.

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While Kumah noted that transactions had dropped, he said the BoG was still capable of its mandate.

He also said the losses BoG suffered, and its negative balance sheet, were not out of the ordinary.

"In fact most Central Banks around the world run negative balances to achieve the overall economic anchor objectives of a Central Bank," Kumah added.

Potential BoG recapitalisation levy reported that the Minority in Parliament warned Ghanaians that the government could introduce a new tax to support the Bank of Ghana.

The Minority said this new tax will be described as the Bank of Ghana recapitalisation levy.

This assertion followed the NDC's call for the Bank of Ghana leadership to resign after it lost GH¢60 billion.

BoG vows never to lend money to government

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Earlier, reported that the BoG said it would no longer lend the government money to avoid repeating its losses.

The central bank said the zero-financing policy is also part of a grand plan to recoup some GH¢60.8 billion it lost in 2022.

Director of Research at the BoG Dr Philip Abradu-Otoo disclosed during a TV programme that the policy would be implemented to the letter.

He also said claims that it lost close to GH¢60 billion in 2022 due to reckless spending are unfounded.

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