Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has revealed a shocking truth about the country’s financial state. According to Dr. Forson, the Bank of Ghana (BoG) is currently grappling with a negative equity of GHS55 billion, a significant financial challenge inherited from the previous administration.
This staggering deficit underscores the need for immediate government intervention to stabilize the central bank’s financial position. Dr. Forson emphasized that the BoG’s balance sheet is in dire need of a bailout to transition from a negative equity to a positive one.
But that’s not all – various government entities, including the Road Fund, COCOBOD, and the Electricity Company of Ghana (ECG), are also struggling with significant debts. The Road Fund owes GHS5.5 billion, COCOBOD owes GHS32 billion, and the ECG owes a whopping GHS68 billion to suppliers and $1.73 billion to Independent Power Producers (IPPs).
Dr. Forson highlighted the ECG’s precarious situation, where they buy power they’re supposed to sell, collect money, and pay, but still fail to pay IPPs and suppliers. This has resulted in the government owing IPPs $1.73 billion and suppliers another GHS68 billion.
These revelations paint a dire picture of Ghana’s financial health, emphasizing the need for urgent action to address these challenges and put the country’s economy back on track.
CRN/ Ruth Abla ADJORLOLO
