2025 Budget: BoG Seeks GHS53 Billion Bailout Amid Negative Equity Crisis
Accra, March 11, 2025 – Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has disclosed that the Bank of Ghana (BoG) is seeking a GHS53 billion bailout to address its negative equity challenge.
Presenting the 2025 Budget Statement and Economic Policy in Parliament on Tuesday, March 11, Dr. Forson emphasized the dire financial situation of the central bank and the urgent need for government intervention to restore stability.
“The BoG is also seeking an amount of GHS53 billion as a bailout to be able to address their negative equity challenge they face,” he stated.
Government Arrears Hit GHS67.5 Billion
Dr. Forson further revealed that total central government arrears had reached GHS67.5 billion as of December 2024, representing 5.2% of Ghana’s GDP. The road sector alone accounted for GHS21 billion of this debt.
“At the end of December 2024, total central government arrears amounted to GHS67.5 billion, representing 5.2% of GDP. Mr. Speaker, with the road sector recording arrears of GHS21 billion,” he explained.
Upon assuming office on January 23, 2025, Dr. Forson was met with numerous payment requests from government contractors and suppliers. To assess the full extent of unpaid claims, the Ministry of Finance (MoF) requested detailed reports from all Ministries, Departments, and Agencies (MDAs) on January 28, 2025.
Following a special hearing with MDAs to validate arrears, it was confirmed that the government owes contractors and suppliers GHS67.5 billion.
Breakdown of Government Debt
📌 GHS67.5 billion owed to government contractors and suppliers
📌 GHS49.2 billion in outstanding invoices from MDAs
📌 GHS18.3 billion in bank transfers at the Controller and Accountant General’s Department
Additionally, these figures exclude other major debts:
📍 $1.73 billion owed to Independent Power Producers (IPPs)
📍 GHS68 billion owed by the Electricity Company of Ghana (ECG)
📍 GHS32 billion owed by COCOBOD
📍 GHS5.75 billion owed by the Ghana Road Fund
Government’s Next Steps
The Mahama administration has vowed to tackle the country’s rising debt burden, with a focus on stabilizing the economy and improving fiscal management.
With the BoG bailout request now public, stakeholders will be closely watching how the government navigates Ghana’s economic recovery plan in the coming months.
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