The Ghanaian government has officially committed to fully recapitalising the Bank of Ghana by 2032, following the recent passage of amended legislation by Parliament aimed at securing the central bank’s long-term financial stability. Finance Minister Dr. Cassiel Ato Forson announced this commitment on Friday, May 15, coinciding with the conclusion of Ghana’s three-year US$3 billion loan program with the International Monetary Fund (IMF). The new legislation provides the necessary legal framework to address the Bank of Ghana’s negative equity position.
Context: The Bank of Ghana’s Financial Standing
In 2025, the Bank of Ghana reported a significant operating loss of GH₵15.63 billion and an Other Comprehensive Income (OCI) loss of GH₵19.32 billion. This resulted in a substantial increase in its negative equity, escalating from GH₵61.32 billion at the beginning of the year to GH₵96.28 billion by its end. This financial deterioration had become a focal point for policymakers and international financial partners, necessitating decisive action.
Gradual Recapitalisation and Automatic Stabilisation
The recapitalisation process will be implemented gradually over the period leading up to 2032. Minister Forson emphasized the government’s dedication to supporting the Bank of Ghana in its crucial mandate of maintaining price stability.
A key feature of the amended legislation is the introduction of an automatic recapitalisation mechanism. This provision ensures that if the central bank’s capital falls below the minimum requirement at any point, the central government is legally bound to automatically inject the necessary funds.
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