Bank of Ghana Remains Financially Stable Despite Negative Equity - IMF

The International Monetary Fund (IMF) Mission Chief to Ghana, Ruben Atoyan, has defended the Bank of Ghana’s negative equity position, stating that the central bank remains financially stable in terms of its policy operations and is expected to achieve full recapitalisation in the coming years.

Speaking at a press briefing in Accra on Friday, May 15, following the conclusion of a staff-level agreement between the IMF and the Government of Ghana under the Policy Coordination Instrument (PCI), Dr Atoyan explained that negative equity among central banks is not uncommon and should not automatically be interpreted as insolvency.

According to him, the key issue is whether a central bank remains “policy solvent,” meaning it can continue generating sufficient income to cover operational expenses and effectively implement monetary policy.

Dr Atoyan stated that based on the Bank of Ghana’s 2025 financial statements, the institution remains capable of meeting its operational and policy responsibilities despite reported losses and its negative equity position.

He explained that the central bank continues to generate enough income to finance the costs associated with its monetary policy activities and general operations.

The IMF official further disclosed that the recapitalisation of the Bank of Ghana has already been incorporated into Ghana’s debt sustainability framework, which will accompany the Fund’s staff report.

He noted that while IMF projections assume significant recapitalisation support for the central bank, the estimates are intentionally conservative because central banks are often able to rebuild their balance sheets gradually through profits generated from policy operations.

According to Dr Atoyan, this could reduce the need for direct government financial injections and help ease pressure on public finances.

He expressed confidence that the Bank of Ghana could achieve full recapitalisation by 2032 or even earlier depending on future economic and policy developments.

Dr Atoyan also observed that 2025 was a particularly difficult year for the central bank’s balance sheet due to several financial pressures.

These included the high costs of open market operations used for liquidity management, elevated interest rates during efforts to control inflation, and exchange rate depreciation, all of which affected the Bank’s accounting position.

However, he noted that some of these pressures were offset by valuation gains from gold holdings, adding that gold sales undertaken by the central bank in late 2025 helped strengthen its income position.

The IMF also acknowledged losses associated with the Domestic Gold Purchase Programme but indicated that discussions are ongoing with Ghanaian authorities to reduce and eventually eliminate those costs.

Dr Atoyan’s comments come amid public debate over the Bank of Ghana’s 2025 financial results, which revealed widening negative equity despite improvements in major macroeconomic indicators such as inflation, foreign reserves, and exchange rate stability.

His remarks reinforce earlier explanations from government officials that the Bank’s balance sheet challenges largely reflect the financial costs incurred in stabilising the economy rather than signs of operational collapse, with emphasis remaining on maintaining price and financial stability.