The Member of Parliament for Ofoase Airebi, Kojo Oppong Nkrumah, has warned that the Financial institution of Ghana (BoG) may function on “borrowed time” if pressing steps usually are not taken to recapitalize the Financial institution of Ghana.
His remarks got here after the financial institution reported a lack of GH¢15.6 billion within the earlier monetary yr.
Remarks on Pleasure Information The Pulse He expressed concern on Wednesday, Could 13, at what he described as extreme fiscal stress throughout the central financial institution, noting that the central financial institution’s steadiness sheet exhibits indicators of great weak point with a destructive capital place of roughly GH¢96 billion.
Mr Oppong Nkrumah mentioned the Financial institution was in a precarious monetary place as its present internet capital was destructive and required instant intervention to revive confidence and stability.
He warned that with out a credible, clear and time-bound recapitalization plan, monetary establishments may face additional deterioration.
He additionally questioned the Financial institution’s reliance on unconventional insurance policies, together with gold gross sales, to assist its monetary scenario.
He mentioned the latest enchancment within the financial institution’s reported scenario was pushed by one-off transactions fairly than sustained operational efficiency.
He added that beforehand the central financial institution had not relied on such measures to keep up its place, however latest statistics counsel it’s changing into more and more reliant on them.
Oppong Nkrumah additionally criticized the shortage of parliamentary oversight of main monetary interventions, together with gold buy and sale preparations, which he mentioned contributed to the reported losses.
He argued that monetary knowledge factors to severe structural challenges that require pressing and decisive motion, including that central banks must be stabilized to guard financial confidence.
