BoG losses may add pressure to public debt – Dr Amin Adam warns
Former Finance Minister Mohammed Amin Adam has warned that Ghana may come under renewed fiscal strain as losses at the Bank of Ghana continue to rise, with potential recapitalisation efforts likely to increase public debt and place additional pressure on government finances.
His remarks follow the central bank’s announcement of a GH¢15.63 billion loss for the 2025 financial year, a significant jump from the GH¢9.49 billion deficit recorded in 2024—representing an increase of about 65%. This deterioration comes despite recent improvements in inflation and relative exchange rate stability.
In a letter addressed to the International Monetary Fund dated May 2, 2026, Dr Amin Adam described the Bank of Ghana’s weakening financial position as a direct threat to Ghana’s fiscal outlook, especially as the country exits its Extended Credit Facility programme.
He explained that the central bank’s negative equity effectively represents a postponed fiscal burden that will eventually have to be absorbed by the state. According to him, any government effort to recapitalise the bank through bond issuance could push up public debt levels, increase interest costs, and create refinancing challenges.
Dr Amin Adam further noted that the situation has worsened beyond earlier expectations, with negative equity now estimated at GH₵96.28 billion. He warned that without extending the agreed recapitalisation timeline, the eventual cost to government would continue to rise.
He also cautioned that rising operational expenses at the central bank, particularly those linked to monetary policy actions, could worsen losses. If these costs consistently exceed the bank’s income, he said, additional government support may become necessary, potentially undermining fiscal gains achieved under the IMF programme.
As Ghana prepares to move beyond its IMF-supported arrangement, he urged policymakers to treat the central bank’s financial health as a key risk factor and ensure it is fully incorporated into future fiscal planning.
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