Ghana's Debt Crisis Finance Ministry refutes GHC1.6bn debt to Central Bank

According to the Ministry, the impression created that the Bank of Ghana financed government to the tune of GHC1.6 billion from January to May 2016 is incorrect.

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The Finance Ministry has sought to clarify, what it describes as a wrong impression created by some of the figures presented by the Minister Seth Terkper, as the total amount of budget support from Bank of Ghana in the first quarter of 2016.

According to the Ministry, the impression created that the Bank of Ghana financed government to the tune of GHC1.6 billion from January to May 2016 is incorrect.

In a press statement signed by Deputy Minister Casiel Ato Forson, and copied to Pulse.com.gh,  the amount was a “drawdown in government deposits already lodged with the Bank of Ghana.

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“We wish to take this opportunity to clarify to the general public that all Government receipts are in the custody of the Bank of Ghana. In other words, this amount does not represent a net claim on Government by the Bank of Ghana but rather, a drawdown in government deposits already lodged with the Bank of Ghana.

Similarly, the end-year revised projection of GH¢1.4 billion only signals a draw down on government deposits and not a net claim on Government by the Bank of Ghana”, the statement said.

The Ministry also wished to  re-affirm government’s commitment to the IMF-supported ECF Programme, contrary to believes that government had abandoned the program due to the upcoming elections.

“In so doing, Government is implementing the objectives of the Fund programme and this includes the adherence to the zero-financing of Government by the Bank of Ghana”, the statement concluded.