Dr. Johnson Asiama, the newly sworn-in Governor of the Bank of Ghana (BoG), has outlined plans to reverse the Central Bank’s negative equity position following recent financial losses.
Speaking at his swearing-in ceremony on Tuesday, February 25, 2025, Dr. Asiama stressed that restoring the Bank’s financial health is critical to maintaining stability, credibility, and public trust.
My sixth and last priority area is the need to reverse the Bank of Ghana’s negative equity position or the losses that have been incurred in recent years all to maintain financial stability, maintain the institution’s credibility, and restore public trust,” Dr. Asiama stated.
The Bank of Ghana recorded significant losses in recent years, largely due to debt restructuring measures and broader economic challenges. The Governor underscored the urgency of addressing this situation through a combination of cost-cutting measures and strategic financial policies.
In this vein, we will seek to re-examine the Bank’s non-core operations and I must say that some of these have started already in the last two weeks where savings could be made. We shall adopt several austere measures to help reduce the Bank’s operational costs and achieve cost efficiency,” he explained.
As part of the efforts to restore the BoG’s financial position, Dr. Asiama revealed that clear policies would be put in place to ensure a structured return to positive equity in the medium term.
“We will craft very clear policies to return the Bank of Ghana’s negative equity to positive equity in the medium term,” he assured.
The Bank of Ghana, in its 2022 Published Annual Report and Financial Statements, reported a loss of GHC 60.8 billion largely attributed to the impact of the domestic debt exchange programme, which significantly impaired the bank’s balance sheet.
This development has raised concerns among economic stakeholders about its potential long-term impact on the economy
The BoG has severally defended its position, stating that despite the losses, it remains solvent and capable of performing its mandate. Former Governor, Dr. Ernest Addison also indicated that the bank’s financial position will improve as economic conditions stabilize.
Meanwhile, Deputy Finance Minister-designate Thomas Nyarko Ampem during his vetting has ruled out using public funds to recapitalize the Bank of Ghana.
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