Amin Adam warns BoG losses could heighten fiscal pressure
Former Finance Minister Dr Mohammed Amin Adam has warned that Ghana could face renewed fiscal pressure as mounting losses at the Bank of Ghana threaten to place additional strain on government finances.
His warning follows the central bank’s announcement of a GH¢15.63 billion loss for the 2025 financial year, a sharp increase from the GH¢9.49 billion loss recorded in 2024.
The latest figure represents an increase of about 65 percent year-on-year, despite recent signs of stability in key macroeconomic indicators, including inflation and exchange rate movements.
In a letter addressed to the International Monetary Fund (IMF) on May 2, 2026, Dr Amin Adam said the deteriorating financial position of the Bank of Ghana poses a significant risk to the country’s fiscal outlook, particularly as Ghana prepares to exit its Extended Credit Facility programme.
He noted that the central bank’s negative equity should be viewed as a deferred fiscal burden that will eventually have to be borne by the state.
According to him, the Bank of Ghana’s balance sheet has worsened considerably, with negative equity widening further in 2025.
Dr Amin Adam cautioned that if government chooses to issue bonds to recapitalise the central bank, it could lead to an increase in gross public debt, higher future interest payments and greater refinancing pressure.
He added that the scale of the problem has surpassed earlier projections under the recapitalisation plan agreed between the Ministry of Finance and the Bank of Ghana.
He said the central bank’s negative equity has now deepened to GH¢96.28 billion, warning that unless the recapitalisation period is extended, the fiscal burden on government will rise further.
The former Finance Minister also expressed concern about rising operational costs at the central bank, particularly those linked to monetary policy interventions.
He warned that if sterilisation costs continue to outpace the Bank’s recurring income, further losses could require additional government support, potentially undermining the fiscal consolidation gains made under the IMF-supported programme.
Dr Amin Adam stressed that the issue comes at a critical time as Ghana prepares to transition out of the IMF programme, with policymakers under pressure to preserve debt sustainability and macroeconomic stability.
He urged the IMF to treat the Bank of Ghana’s financial position as a major risk to the country’s economic outlook, insisting that future fiscal planning must fully account for the cost of recapitalising the central bank.
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