Ghana's government is committed to tight financial management. This is to speed up the Bank of Ghana's recovery. Economic advisor Seth Terkper made this statement on May 7, 2026.
He explained that a strong Bank of Ghana is vital. It needs to function well and act as a lender of last resort. This means ensuring the central bank has the financial strength to support the economy.
This commitment fits into Ghana's broader economic goals. The government has worked to improve its ratings. It has also focused on boosting reserves to stabilize the currency. Restoring the Bank of Ghana's balance sheet is a key part of this effort. In 2025, the Bank of Ghana reported an operating loss of GHS 15.6 billion. This was a sharp rise from GHS 9.4 billion in 2024. The bank's negative equity ballooned to GHS 93.82 billion from GHS 58.62 billion.
Mr. Terkper highlighted that the public should remember past challenges. He noted the work done over the years. The bank has significantly contributed to economic stabilization despite its current struggles. The increase in losses was largely due to monetary policy costs. Open Market Operations rose by 95%. Sterilization liabilities jumped by 186%. The Domestic Debt Exchange Programme reduced interest income. This program is designed to manage government debt.
The Bank of Ghana has faced criticism. Some lawmakers question the pace of its liquidity mopping up operations. These operations aim to control inflation. Mr. Terkper defended these measures. He stated that tough actions are sometimes necessary. He pointed to international examples of countries that adopted similar approaches.
The Finance Ministry is implementing a recapitalization program. This program is guided by the Bank of Ghana Amendment Act 1158. It aims to strengthen the bank's financial resilience. A Memorandum of Understanding (MOU) was signed on January 6, 2025. This agreement outlines government support for reversing the bank's negative equity. The plan takes effect when the government restores the bank's total equity to authorized capital levels. This must happen by December 31, 2032, at the latest.
Mr. Terkper rejected calls to change the recapitalization timelines. He emphasized the government's full commitment to the agreed plan. The magnitude of the operating loss does not alter this dedication.