‘Reforms needed to force government to repay borrowings in the same year’ – BoG Governor

Bank of Ghana Governor, Dr. Ernest Yedu Addison, has proposed legislative reforms to address government borrowing from the central bank. Speaking on PM Express Business Edition, he recommended changes to the Bank of Ghana Act to mandate repayment of borrowed funds within the same fiscal year, preventing decades-long debt accumulation.

Dr. Addison defended the central bank's independence, citing its zero-financing policy from 2017 to 2019, with exceptions during the COVID-19 pandemic. He revealed that unpaid government borrowings date back to the PNDC era, creating a misleading perception of BoG’s financial position.

The Governor stressed that reforms ensuring prompt repayment would enhance fiscal discipline, strengthen accountability, and safeguard the financial system, while avoiding past mistakes.