Member of Parliament (MP) representing the Bolgatanga Central Constituency, Isaac Adongo, has accused the Bank of Ghana (BoG) of misleading the public regarding its financial losses.

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He claims that the BoG's reports contain inconsistencies, particularly concerning impairment payments in their audited accounts from the previous year.

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Adongo highlighted that last year, the BoG recorded an impairment of 48 billion, out of which 32 billion was written off, leaving an impairment of 16 billion.

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He pointed out that the current report indicates an increase in impairment from 16 billion to 53 billion, questioning the accuracy of this reported 36 billion increase.An impairment payment, also known as an impairment charge or impairment loss, occurs when the carrying value of an asset on a company's balance sheet exceeds its recoverable amount.

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This situation arises when the asset is no longer expected to generate the same economic benefits as initially anticipated, leading to a write-down in its value.

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BackgroundThe Bank of Ghana disclosed a significant financial loss of GH₵10.50 billion for the fiscal year ending 2023, marking a notable improvement from the GH₵60.9 billion loss reported in 2022. This financial setback is primarily attributed to a substantial rise in total interest expenses related to its open market operations, which surged by GH₵6.7 billion during the period under review.

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According to the Bank’s 2023 Annual Report and Financial Statement, the increase in expenses was deemed necessary to manage the country’s excess liquidity and support the broader macroeconomic adjustment programme aimed at stabilizing inflation rates.

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Despite the incurred loss, the Bank of Ghana highlighted that its aggressive open market operations yielded positive results, contributing significantly to a notable slowdown in inflation to 23.2% by the end of 2023, down from a staggering 54.1% recorded at the close of 2022.

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Total operating expenses for 2023 were reported at GH₵19.2 billion, showcasing a significant decrease from the GH₵66.9 billion recorded in the previous year. This reduction was attributed to lower impairment charges on loans and advances, as well as adjustments in the Bank’s holdings of Government of Ghana securities.

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As of December 31, 2023, the Bank of Ghana and its subsidiaries reported total liabilities surpassing total assets by GH₵65.36 billion. The institution also clarified that no funds were allocated for reserve appropriation, given the reserve amount remained in deficit at the end of the financial year.

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In addressing policy solvency concerns, the Bank assured stakeholders of its ability to generate sufficient realized income to cover the costs associated with its monetary policy operations. The Board of Directors and Management reaffirmed that the policy solvency outcome for 2023 aligns with the strategic objectives outlined in the previous fiscal year.

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