{"id":2648,"date":"2026-05-04T17:21:06","date_gmt":"2026-05-04T17:21:06","guid":{"rendered":"https:\/\/parliamentnews360.com\/?p=2648"},"modified":"2026-05-04T17:27:30","modified_gmt":"2026-05-04T17:27:30","slug":"minority-warns-bog-risks-actual-insolvency-without-reform-will-send-proposals-to-imf","status":"publish","type":"post","link":"https:\/\/parliamentnews360.com\/index.php\/minority-warns-bog-risks-actual-insolvency-without-reform-will-send-proposals-to-imf\/","title":{"rendered":"Minority Warns: BoG Risks \u201cActual Insolvency\u201d Without Reform, Will Send Proposals to IMF"},"content":{"rendered":"\n

ACCRA, May 3, 2026<\/em> \u2014 The Minority says the Bank of Ghana risks sliding from \u201cpolicy insolvency\u201d to \u201cactual insolvency\u201d unless urgent reforms are forced through the IMF\u2019s next review, after revealing what it calls a GHS 44bn \u201cunderlying loss\u201d for 2025.<\/strong><\/p>\n\n\n\n

\u201cToday we just wanted to expose these facts to you. Later in the week we will add our recommendations to it,\u201d the Minority spokesperson on Economy and Development, Hon. Kojo Oppong Nkrumah said, closing a press briefing that tore into BoG\u2019s 2025 results.<\/p>\n\n\n\n

The Warning<\/em><\/p>\n\n\n\n

\n

\u201cWhat is required are reforms\u2026 to ensure that the Bank of Ghana doesn\u2019t collapse. Because we don\u2019t even trust that this government will listen\u2026 we\u2019re gonna communicate those reforms to the IMF in their last review\u2026 That they must ensure that these reforms take place else the Central Bank sadly\u2026 I may get to actual insolvency.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Context: Why \u201cInsolvency\u201d Is Being Used<\/em><\/p>\n\n\n\n

    \n
  1. Negative Equity<\/em>: BoG\u2019s cumulative negative equity hit GHS 96.3bn in 2025 \u2014 GHS 61.3bn from 2022-2024 + GHS 35bn added in 2025.<\/li>\n\n\n\n
  2. \u201cPolicy Insolvency\u201d Claim<\/em>: Minority says the GHS 44bn underlying loss + GHS 14.6bn cash interest paid to banks means BoG\u2019s balance sheet can\u2019t support policy without wealth transfer.<\/li>\n\n\n\n
  3. Sterilization Escalation<\/em>: \u201cFrom January to now the sterilization they\u2019ve done this year alone is more than what they did last year which led to the 44 billion loss. So how can they tell you that the thing will not happen again?\u201d<\/li>\n<\/ol>\n\n\n\n

    Minority\u2019s 3 Core Allegations Recap<\/em><\/p>\n\n\n\n

      \n
    1. Avoidable Cost<\/em>: GHS 16.7bn OMO bill was \u201ccost of policy reversal,\u201d not inflation-fighting. Scrapping DCRR + Cedi-equivalent reserves ended free liquidity mop-up.<\/li>\n\n\n\n
    2. Wealth Transfer<\/em>: GHS 14.6bn interest to banks = record bank profits while private credit fell 13.9%, youth unemployment hit 34%, and Agenda 111 stalled.<\/li>\n\n\n\n
    3. Gold Loss<\/em>: GHS 9bn BoG loss vs GHS 900m GoldBod profit = GHS 8.1bn net state loss.<\/li>\n<\/ol>\n\n\n\n

      BoG\u2019s Counter-Position<\/em>
      BoG maintains:<\/p>\n\n\n\n

        \n
      • Negative equity \u201cdoes not affect ability to set policy, manage reserves, or supervise banks.\u201d<\/li>\n\n\n\n
      • 2025 was \u201cpeak\u201d \u2014 GANREP, lower 14% policy rate, and no liquidity overhang mean costs won\u2019t repeat.<\/li>\n\n\n\n
      • Results delivered: 3.2% inflation, 41% cedi gain, $14.5bn reserves, lending rates 17.7%.<\/li>\n<\/ul>\n\n\n\n

        What\u2019s Next<\/em>
        The Minority says it will publish detailed reform recommendations \u201clater in the week\u201d and submit them directly to the IMF during its ongoing review, citing lack of trust in government to act.<\/p>\n\n\n\n

        \u201cThey say this will not happen again next year. But\u2026 sterilization this year alone is more than last year,\u201d Hon. Oppong Nkrumah said. \u201cWe don\u2019t even trust that this government will listen.\u201d<\/p>\n\n\n\n

        \n\n\n\n

        The Stakes: A central bank can operate with negative equity \u2014 ECB, Fed, Czech National Bank have. \u201cActual insolvency\u201d would mean inablity to meet obligations. BoG says it\u2019s nowhere near that. Minority says the trajectory lead<\/em>s there without IMF-enforced reform.<\/p>\n\n\n\n

        Source: Clement Akoloh\/parliamentnews360.com<\/p>\n","protected":false},"excerpt":{"rendered":"

        The Minority says the Bank of Ghana risks sliding from \u201cpolicy insolvency\u201d to \u201cactual insolvency\u201d unless urgent reforms are forced through the IMF\u2019s next review, after revealing what it calls a GHS 44bn \u201cunderlying loss\u201d for 2025.<\/p>\n","protected":false},"author":2,"featured_media":2651,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51,1],"tags":[982,1194,1584,863,1586,1585],"class_list":{"0":"post-2648","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-news","8":"category-news","9":"tag-bank-of-ghana","10":"tag-bog","11":"tag-hon-kojo-oppong-nkrumah","12":"tag-imf","13":"tag-insolvency","14":"tag-negative-equity"},"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n