BoG Confident of Recapitalisation
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has expressed confidence that its recapitalisation process will be achieved, citing clear commitment from government following the severe balance sheet pressures triggered by the Domestic Debt Exchange Programme (DDEP).
The domestic debt restructuring, which formed a central pillar of Ghana’s economic recovery programme, significantly weakened the Central Bank’s financial position, sparking public debate over how the BoG should be recapitalised without undermining fiscal discipline or policy credibility.
Earlier, the Minister for Finance, Dr. Cassiel Ato Forson, had ruled out the use of direct taxpayer funds to recapitalise the Central Bank. Instead, he pointed to an existing Memorandum of Understanding signed under the previous administration, which outlined a ¢53 billion recapitalisation package anchored on internal reforms and restructuring measures.
At the time, the Finance Minister maintained that any effort to restore the BoG’s capital position should rely primarily on balance sheet restructuring, operational efficiencies and medium-term financial adjustments, rather than explicit budgetary transfers.
However, speaking at the 128th Monetary Policy Committee (MPC) press briefing on Wednesday, January 28, 2026, the Governor of the Bank of Ghana, Dr. Johnson Asiama, signalled optimism that the recapitalisation process is firmly on track. He revealed that engagements with government have been constructive and supportive, stressing that recapitalisation remains critical to rebuilding confidence in the Central Bank’s operations.
“I believe in the commitment of government to recapitalise the Central Bank following the hit it took to protect the economy amid the domestic debt restructuring programme. So far, discussions with government have been fruitful, and there is support to help repair the Bank’s balance sheet,” Dr. Asiama said.
The Governor explained that restoring the BoG’s capital position is not merely a technical accounting exercise, but a necessary step to reinforce the Bank’s institutional credibility and ensure it can effectively discharge its statutory responsibilities.
According to Dr. Asiama, a well-capitalised Central Bank is essential for maintaining price stability, supervising the financial sector, managing systemic risks and anchoring confidence in monetary policy decisions.
“It is only fair that the wounds suffered as a result are addressed, emphasising that recapitalisation will strengthen the BoG’s operational independence and safeguard its ability to act decisively in future periods of economic stress,” he noted.
Beyond the Central Bank’s balance sheet, Dr. Asiama also pointed to improving conditions within Ghana’s broader banking sector, suggesting that financial system stability is gradually being restored following recent reforms.
He disclosed that as of end-December 2025, 21 out of the 23 licensed commercial banks had met the required capital adequacy thresholds. The remaining two banks, he said, have been granted regulatory forbearance until the end of March 2026 to comply fully with the capital requirements.
The Governor described these developments as encouraging signs of growing resilience within the banking system, reinforcing confidence that ongoing reforms are strengthening the foundations of Ghana’s financial sector as the economy continues its recovery.
