The Bank of Ghana (BoG) has explained that it utilized GH¢25 billion to fund the Public authority's developing obligations on the homegrown market in opposition to cases of utilizing GH¢70 billion.




he Central Bank in a public statement replicated to the Ghana News Organization on Friday prevented the cases by the Part Member of Parliament (MP) for Bolgatanga Central, Isaac Adongo, depicting the claim as “false and unfounded.”

The Legislature in an interview on Tuesday, November 8, said the Governor of BoG, Dr. Ernest Addison, had unlawfully given over GH¢70 billion to the  Government to fund developing obligations on the homegrown market, a move he expressed was against the Public Financial Management Act.

Notwithstanding, the Central Bank in the public statement said that it had involved GH¢25.6 billion as of October 2022, to fund the government's developing obligations, however, it had expanded presently to GH¢40.2 billion

As per the Central Bank, the GH¢40.2 billion supply of government obligation mirrored amassed claims for north of twenty years, including heritage resources, for example, the Telecom Malaysia Bonds given according to the privatization of Ghana Telecom and Tema Petroleum Treatment Facility Bonds.

“There are strict rules on which the Government of Ghana can borrow from the Bank of Ghana, and the strict rules are quite clear, stating that the Bank of Ghana at any point in time should not lend more than five percent of the previous year’s revenue,” the assertion said.

Giving subtleties on what had brought about the collected supply of government obligation, the Bank noticed that in the main quarter of 2022, Ghana's FICO score was minimized and successfully shut out of the Global Capital Business sectors.

It said that subsequently, there were no inflows from outside sources to help financial plan execution and the public authority began encountering fruitless closeouts on week after week premise.

“In the process, the Bank of Ghana had to step in and provide financing to keep government machinery running, and in particular, help prevent a domestic debt default situation,” BoG said.

The Bank additionally said:  “This activity is clearly shown in the Overdraft line, which stood at GH¢25.6 billion as of October 2022.”

"This help is brief and steady with an emergency the board as we work with the Global Money related Asset to plan an obligation activity that will lift the weight of obligation overhauling off the financial plan," it made sense of.


Source: Ghanabusinessnews