The International Monetary Fund (IMF) has backed the Bank of Ghana’s GHS 60 billion loss incurred in 2022.
The Fund says the impairment which was brought on by the government’s Domestic Debt Exchange (DDE) was necessary to “restore macroeconomic stability and public sustainability.”
The Bank of Ghana incurred the loss largely as a result of the government’s Domestic Exchange Programme (DDEP) after its non-marketable holdings of the government of Ghana instruments including long-term stocks, a COVID-19 Bond, and overdraft were subjected to a 50 per cent haircut.
Also, the Bank’s other claims (holdings of marketable instruments) were exchanged under similar terms as other financial institutions under the DDEP, leading to the impairment.
In addition, the Bank incurred revaluation losses on its foreign assets and liabilities due to exchange rate depreciation, leading to a total loss of GH¢55.12bn equity in 2022.
The Central Bank has said, it had to take the hit’ to salvage the economy but this explanation has satisfied industry players who blame the Bank of Ghana for fiscal irresponsibility and unsound practices – a claim the Bank has vehemently refuted.
The latest to jump to the defence of the Bank of Ghana is the financial agency (IMF) which is providing Ghana with a US$ 3billion bailout which has led to the restructuring to bring the country’s debt to sustainable levels.