The BOG, in its 2023 annual financial report, disclosed that DDEP had affected its balance sheet.?

Thus, the bank had signed a Memorandum of Understanding (MOU) to secure early recapitalization in the medium-to-long term.

This, according to the report, was within the context of the second review of the ongoing International Monetary Fund (IMF) programme, which concluded on April 12, 2024.?

The report said a Memorandum of Understanding between the Bank of Ghana and the Ministry of Finance on how the recapitalization is to be executed is expected to be signed by the end of the third quarter.?

The report also noted a number of growing concerns for the Central Bank, which included a loss of GH¢10.50 billion for 2023 as the total liabilities of the bank and its subsidiaries exceeded its total assets by GH¢65.36 billion.?

To avert these losses, the report also disclosed a number of measures the bank will undertake.?

The measures include “refraining from monetary financing of the government’s budget. In this regard, the Bank will continue to adhere to the terms of the Memorandum of Understanding on zero financing of the budget signed between the Bank of Ghana and the Ministry of Finance on April 26, 2023.

The bank will continue with policy measures aimed at optimising the Bank of Ghana’s investment portfolio and operating cost mix to bolster efficiency and profitability.”

The report also disclosed that the board of the bank expected that steadfast implementation of these policy steps, along with fiscal rectitude and continued maintenance of a tight monetary policy stance, would provide enough basis for continued operational policy efficiency and the existence of the bank.?