The Minister for Finance, Dr Cassiel Ato Forson, has said the 2023 Domestic Debt Exchange Programme (DDEP) had a significant adverse impact on the Bank of Ghana‘s balance sheet, weakening the central bank’s capital position.
Presenting the 2026 Mid-Year Budget Review in Parliament on July 23, Dr Forson said the debt restructuring exercise substantially eroded the Bank’s capital, resulting in a negative net equity position.
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According to the Finance Minister, the Government and the Bank of Ghana signed a Memorandum of Understanding (MoU) on January 6, 2025, to implement a phased recapitalisation programme aimed at restoring the central bank’s financial strength.
He disclosed that, in fulfilment of the commitments under the agreement, the government issued a GH¢5 billion recapitalisation bond to the Bank of Ghana in March 2026 to strengthen its equity base.
Dr Forson said the move demonstrated the government’s commitment to rebuilding the financial position of the central bank and ensuring its long-term stability.
“Going forward, government will make annual provision to recapitalise the Bank of Ghana until the Bank’s equity is fully restored, in accordance with the Bank of Ghana (Amendment) Act, 2025 (Act 1158),” he told Parliament.
The Finance Minister added that while the government would continue to provide financial support through the recapitalisation programme, the Bank of Ghana would also undertake internal reforms to improve its financial sustainability.
He said the central bank would conduct a comprehensive operational efficiency review aimed at reducing costs, strengthening financial management and enhancing its long-term resilience.
The measures, he noted, form part of the government’s broader strategy to restore confidence in Ghana’s financial sector and support macroeconomic stability following the impact of the domestic debt restructuring programme.
