The National Communications Officer of the National Democratic Congress (NDC) has said that the Governor of the Bank of Ghana, Dr. Ernest Addison, and his deputies will face prosecution if NDC comes to power.

According to him, the current Bank of Ghana governors and board will be brought to book for incurring a colossal GH¢60bn losses even if they leave the country in the near future.

Sammy Gyamfi argues that Dr. Ernest Addison is not above the law hence will be held accountable by the future NDC government.

In an interview with OnuaTV with Captain Smart on August 9, 2023, the national communications officer for the NDC revealed that the governors and board of directors who supervised the GH¢60bn debt by the Central Bank will surely be jailed if found guilty by the court.

“Ernest Addison is jail bound, he is destined for jail because nothing can save him. From what he has done there is no way Addison will not be prosecuted, no way. It is impossible even if he goes to Kuwait, we [NDC] will make sure he faces prosecution including his governors and board. is he above the law? In this rule of law era? Nobody is above the law he will face full accountability on many other things including this [GH¢60bn losses],” he said in Twi.

Sammy Gyamfi further blamed the Bank of Ghana’s losses incurred on the excessive printing of money which led to the rise in inflation.

“See, the more Bank of Ghana prints money for the government, the more the nation suffers because he is eroding the income of the citizens and that’s the reason behind Ghana’s economic challenges with last year’s inflation rising up to 54.1%” he added.

Background

The Bank of Ghana incurred a significant loss in 2022 largely as a result of the DDEP, its 2022 Annual Report, and Financial Statement have said.

According to the report, the central bank’s holdings of government debt were restructured whereas non-marketable holdings of Government of Ghana instruments including long-term stocks, a Covid-19 Bond, and overdrafts were subjected to a 50 percent haircut.

Bank of Ghana’s other claims (holdings of marketable instruments) were exchanged under similar terms as other financial institutions under the DDEP.

This led to an impairment of GH¢48.40 billion in 2022. At the same time, the Central Bank incurred revaluation losses on its foreign assets and liabilities due to exchange rate depreciation.

The impairments and revaluation losses led to a negative equity position of GH¢55.12 billion for 2022. The report also stated that despite a healthy trade surplus, the balance of payments recorded a deficit of US$3.64 billion on account of significant net outflows in the capital and financial account.

This led to a drawdown of US$3.46 billion in Gross International Reserves from US$9.70 billion at end-December 2021 to US$6.24 billion at end-December 2022, providing 2.7 months of import cover.

The significant drawdown in reserves triggered immense currency pressures and the reduction in the Common Equity Tier 1 capital ratio to 5.5 percent, from 6.5 percent, and an increase in the maximum Tier 2 capital ratio to 3.0 percent, from 2.0 percent of total risk-weighted assets.

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