Former Finance Minister Mohammed Amin Adam has formally petitioned the International Monetary Fund (IMF) regarding the Bank of Ghana’s deepening negative equity. The Bank of Ghana Group’s negative equity expanded from GHS 58.62 billion in 2024 to GHS 93.82 billion in 2025, according to audited statements. The Bank’s standalone position further deteriorated from GHS 61.32 billion to GHS 96.28 billion.
This substantial increase in negative equity, detailed in the 2025 audited financial statements, indicates a lack of significant balance sheet repair. Mr. Adam, who is also the Ranking Member on Parliament’s Finance Committee, expressed concern that this trend suggests limited progress in restoring the central bank’s financial health. He cautioned the IMF about potential risks to Ghana’s macroeconomic stability and long-term fiscal outlook.
Ghana is currently under an Extended Credit Facility (ECF) programme with the IMF, aiming to restore macroeconomic stability and debt sustainability. The Bank of Ghana’s financial health is crucial for this programme’s success. Its substantial losses and negative equity complicate monetary policy implementation and could undermine confidence in the nation's financial system. The central bank's situation reflects broader economic challenges faced by Ghana, including high inflation and debt restructuring efforts.
Mr. Adam urged the IMF Ghana Mission Chief to increase vigilance as Ghana approaches the end of the ECF programme. He stressed the importance of protecting the progress made under the programme. He stated that the durability of economic gains depends on transparent recognition of all public-sector obligations. This statement underscores the need for clear accountability in Ghana's financial management.
The former Finance Minister called for stronger post-programme monitoring by the IMF. He advocated for greater transparency in the central bank’s operations. Key actions requested include clearer guidelines for gold transaction accounting. He also demanded a well-defined recapitalisation strategy for the Bank of Ghana. Promoting stronger measures to prevent monetary financing is also vital for safeguarding Ghana’s economic stability. These steps are critical to prevent further strain on government finances and ensure debt sustainability.
The deepening negative equity of the Bank of Ghana has serious implications for Ghana’s financial markets and economic policy. It could lead to increased borrowing costs for the government. The situation might also influence investor confidence negatively. Decision-makers will closely monitor the Bank of Ghana’s future financial statements and any recapitalisation plans. The international financial community, including the IMF, will also be watching for concrete steps towards restoring the central bank's financial health. This will be crucial for Ghana's continued economic recovery and stability.