The Ranking Member on Parliament’s Finance Committee, Dr. Mohammed Amin Adam, has raised serious concerns about the Bank of Ghana’s (BoG) 2025 audited financial statements, warning of significant risks to the country’s fiscal stability and post-IMF programme credibility.
In a letter addressed to the IMF Mission Chief, Dr. Amin Adam said the central bank’s financial position could have “material implications… for Ghana’s macroeconomic stability, fiscal outlook, and post-programme policy credibility.”
He acknowledged the IMF’s role in stabilising the economy under the Extended Credit Facility (ECF) programme but stressed the need to “safeguard the durability of these gains” as the programme winds down.
A key concern highlighted in the letter is the Bank of Ghana’s deepening negative equity position. According to Dr. Amin Adam, the Bank’s negative equity worsened significantly in 2025.
“Group negative equity increased from GH¢58.62 billion in 2024 to GH¢93.82 billion in 2025,” he noted, adding that this signals that “meaningful balance sheet repair has not yet commenced.”
He warned that this places a growing recapitalisation burden on government, potentially increasing public debt and future fiscal pressures.
The former Finance Minister also pointed to a sharp rise in BoG’s losses, even as operating income improved.
“The Bank recorded a loss of GH¢15.63 billion in 2025, compared with GH¢9.49 billion in 2024,” he stated, attributing the deterioration to high operational costs, including open market operations, exchange losses and gold-related losses.
He added that the overall financial impact is even more severe when comprehensive income is considered, revealing a “total comprehensive loss of GH¢34.95 billion” for 2025.
Dr. Amin Adam further flagged the rising cost of monetary policy implementation, particularly open market operations (OMO).
“The cost of open market operations rose sharply from GH¢8.60 billion in 2024 to GH¢16.73 billion in 2025,” he said, describing the trend as a major quasi-fiscal burden.
He cautioned that without one-off gains such as gold sales, these costs could exceed the Bank’s operating income, raising concerns about the sustainability of current policy measures.
The letter also raised questions about the transparency and sustainability of gold-related transactions.
While the Bank recorded a GH¢9.57 billion gain from gold sales, it also posted “GH¢9.05 billion in net losses on gold deals,” suggesting limited net benefits.
Dr. Amin Adam warned that reliance on such gains could distort the Bank’s true financial position, noting that “the apparent improvement in policy solvency may not reflect a fundamental strengthening of operations.”
Amin-Adam stressed that the BoG’s financial health has direct implications for Ghana’s fiscal outlook, especially as the country exits the IMF programme.
He described the central bank’s negative equity as “effectively a deferred fiscal cost,” cautioning that recapitalisation could increase public debt and crowd out critical spending on infrastructure, health and education.
He also warned that persistently high OMO costs could create a “feedback loop between monetary tightening and fiscal pressure,” potentially undermining gains made under the IMF programme.
To address the challenges, Dr. Amin Adam urged the IMF to push for a comprehensive and transparent recapitalisation plan for the Bank of Ghana, alongside stronger fiscal-risk reporting.
He also called for improved disclosure of quasi-fiscal operations and a review of gold transaction governance, describing the secrecy surrounding gold reserve sales as “a matter of grave concern.”
Additionally, he emphasised the need to maintain strict safeguards against monetary financing of government, warning that any deviation could harm the economy.
Despite the concerns, Dr. Amin Adam acknowledged progress made under the IMF programme, including improved reserves, declining inflation and economic growth.
However, he stressed that the long-term success of these gains depends on transparency and sound fiscal management.
“The durability of that progress will depend on whether fiscal consolidation is supported by transparent recognition of all public-sector obligations,” he stated.
He urged the IMF to treat the BoG’s 2025 financial statements as a critical signal for post-programme surveillance, warning that unresolved risks could threaten Ghana’s economic stability in the years ahead.
