A former Governor of the Bank of Ghana, Dr. Kwabena Duffuor has said the Central Bank is obligated to provide support to government in times of a crisis provided it’s done with adherence to the law.
Dr. Kwabena Duffuor who also is a former Finance Minister between 2009 to 2012 disclosed that in financing Government, the central bank must do so with strict adherence to the Bank of Ghana ACT 612.
In an interview on Citi TV’s Point of View disclosed that during his tenure as Governor, there were times he had to come to the support of Government but in accordance with the law.
“Central Bank belongs to Government. It’s the bank for the Government and as part of its mandate, you cannot refuse to lend to them when they are in difficulty, but you must go by the law.” Dr. Kwabena Duffuor said.
“And during my time, I did that, if Government needed money, we had to make accommodation for Government. Accommodation meaning apply and it will be given to you based on the law. But if we give to Government without going through the law then we are printing money.”
Dr. Kwabena Duffuor, also insisted that the Central Bank should have officially informed the finance minister and provided a copy of that information to Parliament after it provided the government with a bailout for its Domestic Debt Exchange Programme (DDEP).
He said that doing so would not have instigated the raising of so many concerns about the BoG’s loss of GH¢60.8 billion in 2022, especially by the Minority in Parliament
“If he informed the Minister and Parliament about the debt exchange within 7 sitting days, then he complied with the law, if he didn’t then he has a problem.”
Demands for the resignation of the Central Bank’s governor and his deputies intensified after the Bank recorded a GH¢60.81 billion loss in the 2022 fiscal year.
The Minority lashed out at the leadership of BOG over the GH¢60 billion losses well as the printing of some monies to finance government expenses.
