Government Commits to Annual Bank of Ghana Recapitalisation to Repair DDEP-Damaged Balance Sheet

The government has pledged to make annual budgetary provisions to restore the Bank of Ghana’s capital position, marking a long-term fiscal commitment to rebuild the central bank’s balance sheet after the financial shock of Ghana’s Domestic Debt Exchange Programme (DDEP).

Presenting the 2026 Mid-Year Budget Review to Parliament, Finance Minister Dr Cassiel Ato Forson said the 2023 debt restructuring significantly eroded the Bank of Ghana’s capital base, leaving it with negative net equity and necessitating a structured recapitalisation programme.

The commitment follows a Memorandum of Understanding signed between the government and the central bank on 6 January 2025, which outlines a phased approach to restoring the Bank’s financial strength. As part of that agreement, the government issued a GH¢5 billion recapitalisation bond to the Bank of Ghana in March 2026 to strengthen its equity position.

Dr Forson said the government would continue allocating resources annually until the central bank’s equity is fully restored, in line with the Bank of Ghana (Amendment) Act, 2025 (Act 1158).

The recapitalisation plan is intended to reinforce the central bank’s financial independence and strengthen its capacity to conduct monetary policy, absorb future financial shocks and maintain confidence in Ghana’s financial system after the exceptional losses incurred during the debt restructuring exercise.

Alongside government support, the Bank of Ghana is expected to implement a comprehensive operational efficiency programme aimed at reducing costs, improving financial management and restoring long-term institutional sustainability.

The initiative forms part of broader efforts by the administration to stabilise macroeconomic institutions while advancing fiscal consolidation under Ghana’s economic recovery programme.