Former Finance Minister Petitions IMF on BoG’s Worsening Negative Equity and its Fiscal Implications
Former Finance Minister and Ranking Member on Parliament’s Finance Committee, Mohammed Amin Adam, has formally written to the International Monetary Fund (IMF), raising concerns over the Bank of Ghana’s 2025 audited financial statements and cautioning about potential risks to Ghana’s macroeconomic stability and fiscal outlook.
In a comprehensive letter to the IMF Ghana Mission Chief under the Extended Credit Facility (ECF) programme in Washington, D.C., Dr Amin Adam urged the Fund to heighten its vigilance, particularly as Ghana nears the end of the programme, to preserve the progress made so far.
He acknowledged the IMF’s role in supporting Ghana’s economic recovery but stressed the importance of ensuring that “greater attention is paid to safeguarding the durability of these gains” in the post-programme phase.
A key issue raised in his petition is the deepening negative equity position of the central bank. Referencing figures from the 2025 audited accounts, he noted that the Bank of Ghana Group’s negative equity expanded from GH¢58.62 billion in 2024 to GH¢93.82 billion in 2025, while the Bank’s standalone position deteriorated from GH¢61.32 billion to GH¢96.28 billion.
He argued that this trend indicates that “meaningful balance sheet repair has not yet commenced in substance,” suggesting limited progress in restoring the Bank’s financial health.
Dr Amin Adam also pointed to increasing losses and the rising cost of monetary policy operations. According to him, the central bank recorded a loss of GH¢15.63 billion in 2025, up from GH¢9.49 billion in 2024, largely driven by elevated open market operation costs and associated financial pressures.
He warned that these developments could transmit risks to government finances and undermine debt sustainability if not addressed promptly.
The former Finance Minister further called on the IMF to reinforce post-programme monitoring and promote greater transparency in the operations of the central bank. He emphasised that “the durability of that progress will depend on whether fiscal consolidation is supported by transparent recognition of all public-sector obligations.”
He also advocated clearer guidelines on the accounting treatment of gold transactions, a well-defined recapitalisation strategy for the central bank, and stronger measures to prevent monetary financing, as part of efforts to safeguard Ghana’s economic stability.
