BoG justifies funding govt’s 2022 budget with ¢44.5bn

The Bank of Ghana (BoG) has given reasons for financing the government’s 2022 budget with about ¢44.5 billion.

This is coming after renewed discussions in the media regarding the Bank’s funding of the budget in 2022.

A statement issued by the Central Bank noted that its net claims on the government increased by about ¢44.5 billion at the end of December 2022.

The Central Bank had to help government finance critical expenditures to avert a disorderly default of both servicing for domestic and external debt including financing critical imports to keep the economy on a stable path.

“It will be important to recall the circumstances under which the Government of Ghana decided to seek IMF support. Ghana had lost access to the International Capital Market, and domestic revenue was significantly underperforming and not realized, pushing the state of government finances into near external and domestic default.”

“It must be recognized that the ongoing debt operations are part of the corrective measures designed to address the financing problem of the budget. Bank of Ghana financing was part of a crisis management tool used in dealing with the difficulties of 2022,” it said.