The Bank of Ghana (BoG) has stated its justifications for providing $44.5 billion to finance the government’s 2022 budget.
This comes after the Bank’s funding of the budget in 2022 has once again been discussed in the media.
The Central Bank noted in a statement that at the end of December 2022, its net claims against the government increased by about $44.5 billion.
To prevent a disorderly default on both the servicing of domestic and external debt as well as the financing of essential imports to keep the economy on a stable course, the Central Bank had to assist the government in financing these necessary expenditures.
“It will be important to recall the circumstances under which the Government of Ghana decided to seek IMF support. Ghana had lost access to the International Capital Market, and domestic revenue was significantly underperforming and not realized, pushing the state of government finances into near external and domestic default.”
“It must be recognized that the ongoing debt operations are part of the corrective measures designed to address the financing problem of the budget. Bank of Ghana financing was part of a crisis management tool used in dealing with the difficulties of 2022,” it said.
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