The Bank of Ghana (BoG) has justified its decision to finance the government’s 2022 budget with about ¢44.5 billion.
A statement issued by the Central Bank indicated that its net claims on the government shot up by about ¢44.5 billion at the end of December 2022.
According to the Central Bank, it had to help government finance critical expenditures to avert a disorderly default of both servicing for domestic and external debt including financing critical imports to keep the economy on a stable path.
“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.
