Ghana Faces GHS 55 Billion Financial Crisis at BoG, ECG, and COCOBOD – Ato Forson Reveals

Finance Minister Dr. Cassiel Ato Forson has revealed that the Bank of Ghana (BoG) is facing a critical financial crisis, with a negative equity of GHS 55 billion. This financial setback was inherited from the previous administration and requires immediate government intervention to restore the central bank’s financial stability. Dr. Forson stressed that the government would need to provide substantial financial support to transition the BoG’s balance sheet from negative to positive equity.

In addition to the central bank’s struggles, Dr. Forson highlighted the mounting debts owed by key state entities, including COCOBOD and the Electricity Company of Ghana (ECG). COCOBOD currently owes GHS 32 billion, while ECG’s financial troubles are even more severe, with a debt of GHS 68 billion to contractors and $1.73 billion to Independent Power Producers (IPPs). These debts have placed significant strain on these institutions, which are struggling to meet their financial obligations.

The ECG’s dire situation was further underscored by Dr. Forson, who explained that while the company buys power to sell to consumers, it has been unable to collect and pay the necessary amounts. ECG collects approximately GHS 1.5 billion but only retains GHS 500 million, leaving them unable to pay off the debts owed to IPPs and contractors. This situation has led to further accumulation of debt, exacerbating the financial crisis.

The Road Fund, another government entity, also faces considerable financial pressure, owing GHS 5.5 billion. Dr. Forson’s remarks reflect the broader fiscal challenges facing Ghana, signaling the need for urgent measures to stabilize these key state-owned organizations and manage the national economy effectively.

SOURCE: CITI NEWSROOM