Finance Minister Dr. Cassiel Ato Forson has emphasized that clearing the government’s mounting arrears and addressing the Bank of Ghana's (BoG) negative equity challenge are crucial steps toward stabilizing Ghana’s financial system.
Presenting the 2025 Budget Statement and Economic Policy in Parliament on Tuesday, March 11, Dr. Forson revealed that the BoG is seeking a GHS53 billion bailout to resolve its negative equity position and restore financial stability.
“The BoG is also seeking an amount of GHS53 billion as a bailout to be able to address their negative equity challenge they face,” Dr. Forson stated.
Dr. Forson further disclosed that the central government’s total arrears had reached GHS67.5 billion as of December 2024, representing 5.2% of Ghana’s GDP. He noted that the road sector alone accounted for GHS21 billion of the total debt.
“At the end of December 2024, total central government arrears amounted to GHS67.5 billion, representing 5.2% of GDP. Mr. Speaker, with the road sector recording arrears of GHS21 billion,” he explained.
Upon assuming office on January 23, 2025, Dr. Forson said the Ministry of Finance (MoF) was inundated with payment requests from contractors and suppliers.
To assess the scale of the debt, the ministry formally requested details of all outstanding claims from Ministries, Departments, and Agencies (MDAs) on January 28, 2025.
“Subsequently, Mr. Speaker, the MoF held a special hearing with the MDAs to validate the arrears submitted for payment. The response from the MDAs revealed that a staggering amount of GHS67.5 billion is owed to government contractors and suppliers,” Dr. Forson noted.
The arrears include GHS49.2 billion in interim payment invoices from MDAs and GHS18.3 billion in bank transfers from the Controller and Accountant General’s Department.
Dr. Forson also clarified that this figure excludes an additional $1.73 billion owed to Independent Power Producers (IPPs), GHS68 billion owed by the Electricity Company of Ghana (ECG) to contractors, GHS32 billion owed by COCOBOD, and GHS5.75 billion owed by the Ghana Road Fund to various contractors.
The Finance Minister stressed that resolving the BoG’s financial difficulties and clearing the government's arrears would be pivotal in stabilizing the economy and ensuring long-term recovery.
Story by: Joshua Kwabena Smith
Comments