The Dean of Accounting and Finance at the University for Professional Studies, Accra (UPSA), Professor Isaac Boadi, has refuted the assertion made by Mahama that the Akufo-Addo administration has incurred a debt of GHC42 billion from the Bank of Ghana.
During his address at the ABC News Economic Symposium, which took place at the Koforidua Technical University on November 5, 2024, Professor Boadi addressed a query posed by John Mahama to Dr. Mahamudu Bawumia, indicating that the NDC’s presidential candidate had misinterpreted the information.
The former president asked Dr. Bawumia why the government borrowed more than GHC42 Billion from the Bank of Ghana, causing the central bank to post its heaviest loss of GHC60 Billion. The former president is not being truthful with his question. This government has not borrowed any GHC42 Billion from the Bank of Ghana.
The GHC42 Billion represents monies the Bank of Ghana has given to the various governments or administrations since 2014. In the year 2022, the support given to the government by the Bank of Ghana stood at GHC5,328, and not the GHC42 Billion the former president is bandying about.
Professor Boadi stated that the Bank of Ghana’s support of GHC5,328 billion to the government was a response to the severe economic crisis, which was primarily imported rather than a result of domestic factors.
Ghana had lost access to the International Capital Market; domestic revenue was also underperforming. The government needed to finance critical expenditures. To avert a disorderly default including financing critical imports to keep the economy on the stable path, Bank of Ghana needed to provide the necessary financing.
Professor Boadi gave the following as Bank of Ghana’s claims on Government as at December 2022:
- Bank of Ghana’s purchase of treasury bonds from banks to provide them with liquidity to enable them to meet their obligation to customers GH¢ 7.2 billion.
- On-lending facilities granted by the international Monetary Fund (IMF) for onward lending to Government GH¢ 8.9 billion
- Overdraft extended to Government, solely meant for the purpose of addressing auction shortfalls and paying customers whose bonds had matured and for which Government did not have adequate resources GH¢ 37.9 billion
- Government Deposit liabilities at the Bank of Ghana recorded an increase in the course of 2022 GH¢ 9.5 billion
- On a net basis therefore, putting together all claims and netting off all deposit liabilities, these transactions resulted in an increase in Bank of Ghana’s net claims to the Government, and these amounted to GHC44.5 billion.
Professor Isaac Boadi urged the Ghanaian electorate to remain vigilant against the falsehoods propagated by the NDC’s presidential candidate as the 2024 elections approach this December.
