The GH60 billion impairment loss reported by the Bank of Ghana in the 2022 fiscal year has been supported by the International Monetary Fund (IMF).

There is no need for concern, the Bretton Woods institution stated in a post regarding Ghana that was retrieved from its website on August 10, 2023.

It upheld the claim that the Bank of Ghana experienced losses as a result of its involvement in the government's Domestic Debt Exchange Programme (DDEP), which is a part of initiatives to address the sustainability of debt and restore macroeconomic stability.

However, the IMF urged the Bank of Ghana to uphold its policy directives and take strict action to bring inflation under control and back to its predetermined objective of 8%.

Below is what the IMF said about BoG’s impairment loss in 2022

Why did the Bank of Ghana 36+ (BoG) incur losses from the authorities’ domestic debt exchange and what are their implications?

The Ghanaian authorities’ domestic debt exchange (DDE) is a key element of their plan to restore macroeconomic stability and public debt sustainability. The BoG is participating in the DDE to share some of the burden the DDE places on government debt holders, along with banks, other financial institutions, pension funds and individuals.

The loss the BoG incurred in the process has contributed to reducing its net equity to a negative value. Importantly, however, this does not prevent the BoG from fulfilling its policy mandates and ensuring inflation gradually returns toward its 8-percent target. Indeed, central bank income is expected to be sufficient to cover monetary policy operational costs. The BoG’s net equity is expected to improve significantly over time and eventually return to positive territory.