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.
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.