MP Reports BoG To IMF: Fires Petition Over Massive Losses

Member of Parliament for the Karaga constituency, Dr Mohammed Amin Adam, has officially petitioned the IMF Mission Chief for Ghana to warn that the country’s post-IMF programme stability is under threat. The seven-page letter dated May 5, 2026, claims the Bank of Ghana’s negative equity has worsened dramatically to GH¢96.28 billion as of December 2025, up from GH¢61.32 billion the previous year.

Dr. Amin Adam, a former Finance Minister and currently Ranking Member on Parliament’s Finance Committee, said the central bank’s 2025 financial performance reveals that “meaningful balance sheet repair has not yet commenced in substance” and that the government faces a “large and growing recapitalisation obligation.” The petition sourced its figures from the central bank’s audited financial statements.

The letter comes as Ghana’s three-year Extended Credit Facility (ECF) arrangement with the IMF is set to expire in the coming months. Dr. Adam, who served as Finance Minister under the previous New Patriotic Party (NPP) administration, warned that the durability of those hard-won gains is now at risk.

Losses Widen Despite Higher Income

According to the 2025 BoG financial statements cited in the letter, the bank recorded a net loss of GH¢15.63 billion in 2025, compared with a GH¢9.49 billion loss in 2024. The deterioration occurred even as operating income rose, driven by sustained increases in open market operation (OMO) costs, revaluation losses, exchange losses, and gold-related losses.

Dr. Adam noted that the full damage to the bank’s capital position is even more severe when comprehensive income is considered. While the bank benefited from GH¢13.5 billion of positive other comprehensive income in 2024, resulting in a net comprehensive gain of GH¢4.02 billion, the situation reversed sharply in 2025. The bank recorded a total comprehensive loss of GH¢34.95 billion, which rises to approximately GH¢44 billion when net gains from gold sales are added back.

OMO Costs Surge to GH¢16.73 Billion

The cost of Open Market Operations rose sharply from GH¢8.60 billion in 2024 to GH¢16.73 billion in 2025. Dr. Adam said OMO expenses now constitute about 75% of total bank operating income, describing this as a “structurally heavy” quasi-fiscal cost that raises “serious questions about the sustainability of current policy operations.”

“Without the one-off gain from the sale of gold reserves, OMO costs would have exceeded the Bank’s operating income,” he wrote. He further warned that the high cost of controlling inflation should not be viewed in isolation, pointing to “the near collapse of domestic production” and noting that imported staples such as maize, rice, and soybeans have become cheaper than locally produced goods, harming domestic job creation.

Gold Sales Mask Underlying Weakness

 The bank’s reported policy solvency position of GH¢5.5 billion for 2025 requires “careful interpretation,” Dr. Adam said, because it includes a GH¢9.57 billion net gain from the sale of refined gold. “Without this one-off gain, the underlying policy solvency position appears materially weaker and potentially negative,” he wrote, warning that the apparent improvement does not reflect a fundamental strengthening of operations.

The letter also flagged sharp declines in the revaluation account reserve, which fell from GH¢25.80 billion in 2024 to just GH¢2.18 billion in 2025, driven by GH¢23.62 billion in exchange and revaluation losses on gold, Special Drawing Rights (SDRs), and foreign securities. This demonstrates the bank’s high sensitivity to exchange-rate movements, Dr. Adam noted.

Fiscal Fallout and Recapitalisation Gap

Dr. Adam warned that the BoG’s negative equity is “effectively a deferred fiscal cost” that will ultimately fall on the state. While the Ministry of Finance and the Bank of Ghana signed a Memorandum of Understanding to recapitalise the bank between 2026 and 2032, that agreement was based on the earlier GH¢61.32 billion negative equity figure.

“This position is now worse at negative GH¢96.28 billion, and without an extension of the capitalization period, the fiscal cost to the government can only increase,” he said. Any government bond issuance to recapitalise the bank would increase gross public debt, future interest obligations, and rollover pressures, potentially undermining the fiscal consolidation achieved under the IMF programme.

The former Finance Minister also raised concerns about the use of gold reserves, noting that the sale of approximately 18 tonnes of gold, which generated about GH¢40.3 billion, was presented as a reserve portfolio rebalancing exercise. However, he said the financial statements suggest the gains “played a significant role in supporting income,” raising questions about transparency. “The secrecy that surrounded the sale of 18 tons of gold reserves remains a matter of grave concern,” he wrote.

Government Accused of Missing Reform Benchmarks

In a particularly pointed section of the letter, Dr. Adam accused the current National Democratic Congress (NDC) administration, which took office in January 2025, of missing key structural reform benchmarks under the IMF programme. He noted that programme conditionalities are legally binding, adding: “This makes us wonder how the programme has continued to progress despite the weakening of reform momentum.”

He contrasted the NDC’s record with the NPP’s tenure, during which he said “we took the pain of implementing difficult policies … even at the risk of the anger of our people.” He cited achievements including building gross international reserves to $9 billion, reducing inflation from 54% to 23%, achieving real GDP growth of 5.8%, and securing surplus trade and current account balances.

“The sacrifices of our people must be commended and not be taken for granted as the government and the Bank of Ghana are currently doing,” he wrote.

Nine Recommendations to IMF

Dr. Adam urged the IMF to take nine specific actions in its engagement with Ghanaian authorities. First, he called for a transparent, multi‑year recapitalisation plan for the Bank of Ghana, broken into annual tranches, with clear budget treatment and the requirement of parliamentary approval. Second, he insisted that the central bank’s recapitalisation be formally incorporated into fiscal‑risk analysis and debt sustainability assessments.

Third, he recommended developing a recurring measure of “policy solvency” that excludes one‑off items such as gains from gold sales, to provide a clearer picture of the Bank’s underlying operational health. Fourth, Dr. Adam stressed the need to strengthen disclosure of quasi‑fiscal operations, including gold programmes, open market operation costs, and foreign‑exchange support activities. Fifth, he called for a review of the governance and transparency surrounding gold transactions, particularly regarding counterparties and risk controls. Sixth, he asked the IMF to resolve how the effects of the Domestic Debt Exchange Programme on the Bank of Ghana’s balance sheet should be treated.

Seventh, he requested an independent technical review of any non‑standard accounting treatments used by the central bank. Eighth, he urged the Fund to maintain strict post‑programme safeguards against the monetary financing of the budget. Finally, he proposed creating a quarterly post‑programme fiscal‑risk dashboard that would cover central bank equity, OMO liabilities, and contingent liabilities, allowing for ongoing monitoring of the most critical vulnerabilities.

 IMF Criticism

 Dr. Adam also took aim at the Fund itself, stating that “the Fund’s inconsistent positions on some policies like forex interventions, monetary financing of government and the computation of fiscal data particularly the primary balance, have been unhelpful in building policy consensus in Ghana.”

He specifically criticised what he described as IMF advice to the government to pass amendments to the Bank of Ghana Act allowing monetary financing, calling it “the greatest disservice to the country” and warning it “would come hurting our economy if not addressed.”

IMF Response Pending

The IMF Mission Chief for Ghana, the Director of the IMF Africa Department in Washington D.C., and the IMF Resident Representative in Accra were all copied on the letter. The IMF had not issued a public response as of press time.

Dr. Adam requested a “quick response” from the Mission Chief, concluding: “You should treat the Bank of Ghana’s 2025 financial statements as an important signal for post-programme fiscal surveillance. The reported figures suggest that Ghana’s fiscal adjustment should not be assessed only through the central government budget balance, but also through the broader public-sector balance sheet.”

Ghana’s ECF programme is scheduled to conclude in the coming months, after which the country is expected to transition to post-programme surveillance and full market re-entry.