The Bank of Ghana (BoG) has said it will be engaging Parliament with regards to concerns raised by the Minority Caucus over the breach of the Ghs 10 billion cap Asset Purchase Programme support to government last year.
Government last year undertook a Ghs 10 billion Asset Purchase Programme from the Central Bank to help finance the budget as well as enable it provide fiscal stimulus packages and freebies for businesses and households adversely impacted by the pandemic.
Reasons assigned by the Central Bank for the Ghs 10 billion financing support to government, was the high interest rate costs on loans to be borne by government, if government was to go and borrow from the international capital market during the pandemic.
Questioning the Finance Minister, Ken Ofori-Atta, during his vetting by the Appointments Committee of Parliament, Leader of the Minority Caucus in Parliament, Haruna Iddrisu, posited that aside the Ghs 10 billion financing support given to government by the BoG, an undisclosed amount was also given to government without the knowledge of Parliament.
Mr Ofori-Atta, then the Finance Minister-designate, admitted that some additional monies were given to government but maintained that the Ghs 10 billion financing support was the main transaction from the BoG to government.
“To my recollection the Ghs 10 billion Asset Purchase financing support was the main transaction,” he stated.
Reports indicate that aside the initial Ghs 10 billion transaction made to government, an additional Ghs 12 billion was made available. Amounting to a total transaction value Ghs 22 billion.
Reacting to the Minority’s demand for investigations and scrutiny of the regulator for breaching the Ghs 10 billion cap financing support to government in an interview, Head of Research at the BoG, Philip Otoo, stated there will be no need for investigations as the Bank did not breach the Ghs 10 billion financing cap.
Adding the Central Bank is always ready to provide to Parliament and the public a breakdown of monies given to government.
“The numbers are there and we can always provide a breakdown for those who want it, the numbers are there in our audited accounts, books of accounts and it should put to rest the concerns of the Minority.
“I don’t think there is too much of a problem, because what we did within the law was the Ghs 10 billion and the additional monies given to government were IMF resources from the Rapid Credit Facility (RCF) and we also took over the bonds of CBG to provide liquidity to meet the demands of the depositors of the FMCs,” he stated.
