The Bank of Ghana has announced its resolution to cease all financing to the government of Ghana from now on.

This decision, according to Dr. Philip Abradu-Otoo, the Director of Research at the apex bank, is one of the four critical steps being implemented to address the current financial distress faced by the Central Bank.

“Those steps that are put in place will ensure that we get out of this place quickly and if you read the governors foreword in our annual report, four steps have been outlined; one, is to try as much as possible not to lend to government again.

"Which in the IMF program we have logged that in as zero financing because it is part of the problem,” he told JoyNews in an interview.

According to the Bank of Ghana's 2022 annual financial report, there was a significant loss of over GH¢60 billion.

Critics attribute this loss primarily to the government's excessive borrowing and lack of financial discipline.

In an interview with Joynews, Dr. Abradu-Otoo explained that the Bank of Ghana is currently implementing its zero financing strategy as a measure to restore the bank's financial stability.

However, the government's decision to write off debts owed to the Central Bank has faced strong opposition from the parliamentary minority.

Isaac Adongo, the Minority spokesperson on Finance, addressed the media in Parliament, arguing that the debt write-off without parliamentary approval violates the Public Financial Management Act and, therefore, should be considered invalid.

The minority has demanded that the government reinstate the debt, which resulted from a Debt Exchange Program implemented by the government.