Deputy Finance Minister Denies Proposed Bank of Ghana Recapitalization Levy – Dr John Kumah to Ato Forson

In response to recent claims made by the Minority Leader, Dr. Ato Forson, regarding the government’s alleged intention to introduce a Bank of Ghana (BoG) recapitalization levy, Deputy Minister of Finance, Dr. John Ampontuah Kumah, has vehemently denied these allegations.

The assertions, made during a press conference on August 8, suggested that the government was considering imposing the levy to counteract recent losses incurred by the central bank.

Counterclaims and Financial Stability

Dr. Ato Forson cited international involvement in his statement, mentioning that the International Monetary Fund (IMF) had offered assistance to the government in formulating a plan for BoG recapitalization. The assertions were grounded in the “Memorandum of Economic and Financial Policy” (MEFP) sent to the IMF, where paragraph 18 purportedly addressed the need for such a levy. Dr. Forson expressed concern about the alleged state of the central bank, claiming that its virtual collapse warranted urgent measures.

Bank of Ghana Recapitalization Levy
Bank of Ghana Recapitalization Levy: Dr Ato Forson

Government’s Rebuttal and Solidity of BoG

However, the Deputy Finance Minister, via a Facebook post on the following day, August 9, categorically rejected these claims. The representative from Ejisu affirmed that the government had no intention of introducing a recapitalization levy for the Bank of Ghana. Contrary to the opposition’s assertions, Dr. Kumah asserted that the BoG remained robust and stable. He urged Ghanaians to disregard what he labeled as “propaganda” disseminated by the National Democratic Congress (NDC).

Financial Health and Income Sources

Dr. Kumah elucidated that the Bank of Ghana’s strength was derived from various sources of income. He clarified that the primary revenue generation for the bank stemmed from government transactions, encompassing fees and charges applied to all government transfers.

Additionally, he highlighted the bank’s investments in marketable instruments and earnings originating from its non-marketable holdings as supplementary income sources. These assertions served to underline the bank’s financial stability and counter any concerns raised about its fiscal health.

In the face of the contrasting claims, the discourse surrounding the potential introduction of a Bank of Ghana recapitalization levy continues to be a subject of public attention. The government’s assertion of the bank’s financial strength stands in contrast to the opposition’s apprehensions about its stability.

As the political landscape evolves, it remains to be seen how this issue will unfold and whether any concrete steps will be taken toward a recapitalization levy.

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