NDC Issues Ultimatum For Addison’s Resignation
The opposition National Democratic Congress (NDC) has issued a 21-day ultimatum to the senior officials of the Bank of Ghana, including the Governor, Ernest Addison for their resignation.
The NDC plans to ensure the ousting of the Governor and his deputies- whom they described as “inept, callous and criminal mismanagers”- if they fail to step down honourably by the end of the deadline.
Their demand is in the wake of the GHC 60.8 billion loss posted by the Central Bank in its 2022 Annual Report and Financial Statements.
According to the opposition party, their plan is meant to “save the Bank of Ghana”.
“We are resolved to embark on popular action to occupy the Central Bank and drive out the team of inept, callous and criminal mismanagers of the finances of this country and save the Bank of Ghana.
“The March to Ensure Accountability will begin in 21 days if the Governor of the Bank of Ghana does not do the needful and pack bag and baggage out of that sacred institution that he has so desecrated. Dr Ernest Addisson Must Go! There has to be an end to impunity and it is NOW!” Minority Leader Cassiel Ato Forson said during a press conference.
BoG Loss
In its 2022 Annual Report and Financial Statements released, the BoG said it lost GHC 60.8 billion.
Out of the total amount, the Bank said GHC53.1 billion resulted from Domestic Debt Exchange Programme (DDEP) whereas price and exchange rate valuation effects resulted in GHC 5.2 billion of the total loss, and GH3.3 billion from interest expense on the cost of monetary policy operation accounted.
Justifying the whooping GHC53.1 billion loss, it explained, “In addition, the Bank of Ghana’s (BoG’s) exposure to COCOBOD, which has been built over the years, was also impaired. As we all know, the Government of Ghana embarked on both domestic and external debt restructuring. The holdings of Government instruments and COCOBOD exposures were all part of the perimeter of the debt exchange.
“Whereas all other stakeholders that participated in the Domestic Debt Exchange (DDEP) did not have principal haircuts, but rather had new instruments with new tenors and coupon structure, the BoG, served as the loss absorber to the entire debt exchange program, a key requirement that allowed the Government of Ghana to meet the threshold for the approval of the IMF program.”
As a result, it said the Bank had to take on a 50 per cent principal haircut on the total principal (which stood at GHC 64.5 billion at the time of the exchange).
It continued, “Consequently, BoG had new instruments with extended tenor and significantly reduced coupon. By applying the full requirements of IFRS 9, this means that from the principal alone, a 50 per cent haircut on the non-marketable amounted to a loss of GHC32.3 billion. Restructuring of marketable instruments amounted to a loss of GHC16.1 billion. The impairment from exposure to COCOBOD also amounted to GHC 4.7 billion.
