Ghana could face renewed fiscal pressure as losses at the Bank of Ghana (BoG) deepen, with recapitalisation likely to increase public debt and strain government finances, former Finance Minister Dr Mohammed Amin Adam has warned.
His comments come after the central bank posted a GH¢15.63 billion loss for the 2025 financial year.
This marks a sharp deterioration from the GH¢9.49 billion loss recorded in 2024. The roughly 65% year-on-year increase comes at a time when key macroeconomic indicators, particularly inflation and exchange rate volatility, have shown signs of stabilisation.
In a letter to the IMF dated May 2, 2026, Dr Amin Adam said the central bank’s worsening financial position poses a direct risk to the country’s fiscal outlook, especially as Ghana exits its Extended Credit Facility programme.
“The Bank of Ghana’s negative equity is effectively a deferred fiscal cost,” he said.
He pointed to a sharp deterioration in the Bank’s balance sheet, with negative equity widening significantly in 2025, warning that the burden of restoring the central bank’s finances would ultimately fall on the state.
“If the government issues bonds to recapitalise the Bank, this could increase gross public debt, future interest obligations, or rollover pressures,” he said.
Dr Amin Adam added that the scale of the problem has grown beyond earlier projections tied to an existing recapitalisation plan agreed between the Finance Ministry and the central bank.
“This position is now worse at negative GH₵96.28 billion, and without an extension of the capitalization period, the fiscal cost to the government can only increase,” he said.
He further cautioned that rising operational costs at the central bank, particularly from monetary policy interventions, could deepen the problem and create additional fiscal strain.
“If sterilisation costs continue to exceed the Bank’s recurring income, future central bank losses may require additional Government support,” he said, warning that this could “undermine fiscal consolidation gains achieved under the programme.”
The concerns come at a critical moment as Ghana prepares to transition out of its IMF-supported programme, with policymakers under pressure to sustain gains in debt sustainability and macroeconomic stability.
Dr Amin Adam urged the IMF to treat the central bank’s financial position as a key risk to Ghana’s economic outlook, stressing that future fiscal planning must fully account for the cost of recapitalising the Bank of Ghana.
