The financial state of Ghana has come under scrutiny from Togbe Afede XIV, the Agbogbomefia of Asogli, who likened it to a business on the brink of bankruptcy.
In an opinion piece titled ‘Bank of Ghana has failed us,’ dated Tuesday, December 26, 2023, Togbe Afede XIV highlighted the challenges posed by the Domestic Debt Exchange Programme and the conditions imposed by the International Monetary Fund (IMF).
During a courtesy call by the Speaker of Parliament in December 2021, Togbe Afede XIV had already expressed concerns, stating that if Ghana were a company, it would have filed for bankruptcy.
The opinion piece emphasized that seeking a bailout from the IMF and implementing the Domestic Debt Exchange Programme led to a default on debts, causing significant losses for holders of Government bonds and casting a pessimistic outlook on the country’s financial situation.
The seven-page document underscored the economic difficulties faced by Ghana under the leadership of President Akufo-Addo, expressing disappointment in how the country has deviated from the vision of its founding fathers.
Togbe Afede XIV criticized the leadership for creating a sense of helplessness among the populace, particularly the youth, instead of instilling hope.
Pointing to recent events, including the government’s inability to meet its debt obligations, Togbe Afede XIV argued that the Bank of Ghana (BOG) had been exposed.
He noted a departure from BOG’s previous approach, with the policy rate being kept below the year-on-year inflation rate for several months.
The opinion piece also highlighted BOG’s announcement of massive losses in 2022, totaling GH¢60 billion, and a year-end negative net worth of GH¢55 billion, leading to its characterization as technically bankrupt.
Read the full piece below: