The Bank of Ghana (BoG) has stated its justifications for providing GHc44.5 billion to finance the government’s 2022 budget.
This comes after the Bank’s support of the budget in 2022 has once again been discussed in the media.
The Central Bank said in a statement that at the end of December 2022, its net claims against the government climbed by nearly GHc44.5 billion.
To prevent a disorderly default on both the service of domestic and external debt as well as the financing of essential imports to keep the economy on a stable course, the Central Bank had to assist the government in financing these necessary expenditures.
“Recalling the events that led the Ghanaian government to request assistance from the IMF would be crucial.
As a result of losing access to the international capital markets and drastically underperforming and unrealized domestic revenue, Ghana’s state of government finances was on the verge of external and domestic default.
“It is important to understand that the ongoing debt operations are corrective actions intended to solve the budget’s financial issue.
According to the statement, the Bank of Ghana’s financing was a crisis management strategy utilized to address 2022’s challenges.
