Parliament on August 2 approved amendments to the Bank of Ghana (BoG) Bill, which now gives the state five per cent funding from the central bank instead of the zero per cent government and the bank requested.
The bill, after receiving presidential assent, is expected to strengthen the bank’s functional autonomy, governance, and ability to respond to banking sector crisis while plugging loopholes identified in the existing Act.
The amendments will, among other things, ensure the central bank submits a semi-annual monetary policy report to parliament to enable the house to properly exercise its oversight responsibility on the bank.
Deputy Minister of Finance, Cassiel Ato Forson, speaking to Class News, expressed optimism that the approval of the bill will fast-track the release of the fourth tranche of the $918-million International Monetary Fund (IMF) facility.
“I think this puts to bed the issues relating to the passage of the Bank of Ghana bill. The proposals were good, parliament has been sitting for the last couple of days, even at night and it’s not just a rubber stamp. … It is good for Ghana. So, I think that going forward, the Government of Ghana is committed to zero financing; five per cent of previous year’s revenue doesn’t mean don’t do zero. … And the question here is that what is the incentive going to central bank to borrow? Is there any incentive? They are far expensive than going to market to borrow, so I have no incentive to borrow. … I am very hopeful, I expect the IMF to go to the board this month [and] I expect that the board document will be circulated on this”.
Source: ClassFMonline.com
