Dr. Johnson Asiama, the newly sworn-in Governor of the Bank of Ghana, has announced plans to reverse the Central Bank’s negative equity position.
This move comes after the Bank of Ghana recorded significant losses, largely due to debt restructuring measures and broader economic challenges.
The losses were reported in the Bank’s 2022 Published Annual Report and Financial Statements, which showed a loss of GHC 60.8 billion.
“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.
To address this situation, Dr. Asiama plans to implement cost-cutting measures and strategic financial policies.
He aims to re-examine the Bank’s non-core operations and adopt austere measures to reduce operational costs and achieve cost efficiency.
“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.
The Governor also assured that clear policies will be put in place to ensure a structured return to positive equity in the medium term.
It’s worth noting that the Bank of Ghana has defended its position, stating that despite the losses, it remains solvent and capable of performing its mandate.
“We will craft very clear policies to return the Bank of Ghana’s negative equity to positive equity in the medium term,” he assured.
Former Governor, Dr. Ernest Addison, also expressed optimism that the bank’s financial position will improve as economic conditions stabilize. However, Deputy Finance Minister-designate Thomas Nyarko Ampem has ruled out using public funds to recapitalize the Bank of Ghana.
