“We have never seen anything like this in our history. If the Bank of Ghana wants to recover from this loss… it will take them more than 45 years,” says economist Professor Godfred Bokpin, from the University of Ghana.
The bank denies charges of mismanagement and says the losses were a result of a fluctuating exchange rate and because of non-payment of loans by state institutions.
It also says the government’s decision to borrow $700m from it and not pay it back in full has contributed to the crisis.
The bank’s governors have also been accused of fanning rampant inflation and economic hardship by their actions. “The time when they were printing billions for the government, didn’t they know that it will have repercussions?” asks lawyer Martin Kepbu.
Why has this happened?
Ghana is currently going through its worst economic crisis in a generation. Last year, the inflation rate hit a record high of 54% – and is still running at more than 40%. Multiple credit rating agencies have downgraded the nation, preventing it from borrowing money internationally.
By September 2022, Ghana’s total debt had surged to $55bn. This meant the government needed in excess of 70% of its income to service the debt, something it was unable to do. It subsequently defaulted on much of its debt payments.
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