Accra: The Bank of Ghana (BoG) recorded a negative equity position at the end of 2025, largely due to losses arising from the Domestic Debt Exchange Programme (DDEP) and monetary policy operations over the period, the Financial Report disclosed.
According to Ghana News Agency, the Bank and its subsidiaries posted a negative equity of GHS93.82 billion as at December 31, 2025, compared with GHS58.62 billion in 2024, as noted in the Financial Report of the Bank for 2025 by the Directors to the Minister of Finance. The report explained that the negative equity stemmed mainly from the restructuring of domestic government securities under the DDEP, which significantly impaired the value of the Central Bank's securities portfolio.
The report revealed that despite the deficit position, the financial statements for 2025 were prepared on a going concern basis. It also noted that measures were underway to restore the Bank's capital position over the medium term. The Government had acknowledged its obligation to recapitalise the Bank in accordance with the Bank of Ghana Act, 2002 (Act 612), as amended, and confirmed that a memorandum of understanding had been signed between the Ministry of Finance and the Bank on January 6, 2025.
Under the agreement, a phased recapitalisation programme covering the period 2026 to 2032 has been adopted, during which the Government will transfer financial instruments and/or cash to the Bank in tranches to rebuild its equity base. The objective is to restore equity to a level commensurate with the Bank's risk profile and operational mandate.
The report added that based on medium-term macroeconomic projections, improvements in net interest income, moderation in interest expenses, and a return to profitability were expected to support a gradual restoration of the Bank's cumulative reserves. The report projected that the combined effect of recapitalisation inflows and improved earnings could result in positive net equity by 2032, alongside the rebuilding of general reserves to prudent buffer levels.
Notwithstanding the current negative equity position, the assessment of the Bank's operations showed no reason to doubt its ability to continue as a going concern over the medium term. Confidence was further expressed that sustained macroeconomic stability, easing inflation, and improved external sector conditions would enhance the Bank's financial performance in the coming years.