The government plans to provide additional funding in the 2027 Budget to strengthen the Bank of Ghana and help restore the central bank’s financial position.

The support will form part of a long-term recapitalisation programme expected to continue until 2032.

Deputy Finance Minister Thomas Nyarko Ampem announced the plan during an event marking 50 years of rural banking in Ghana and the official transition of Rural and Community Banks into Community Banks.

He said the recapitalisation programme is part of the government’s broader efforts to strengthen Ghana’s economy, protect the independence of the Bank of Ghana and rebuild confidence in the country’s monetary system.

According to Mr. Ampem, closer cooperation between the Ministry of Finance and the Bank of Ghana has helped improve economic stability.

He explained that the government’s management of public spending, together with the central bank’s monetary policy decisions, has helped reduce some of the pressures that affected the economy in recent years.

Ghana previously faced high inflation, a sharp depreciation of the cedi and significant pressure on government finances.

Mr. Ampem said economic conditions are now improving as the government and the central bank continue to coordinate their policies.

“Ghana’s economic fundamentals are strengthening. Improved coordination between the Ministry of Finance and the Bank of Ghana has reinforced macroeconomic stability through disciplined fiscal policy and a complementary monetary policy stance,” he said.

The government began the recapitalisation process in March 2026 by issuing a GH¢5 billion bond to support the Bank of Ghana.

A bond is essentially a formal promise by the government to repay money over a specified period. In this case, the bond was issued to help improve the central bank’s financial position.

Mr. Ampem said the GH¢5 billion bond was only the first phase of a broader plan to rebuild the Bank of Ghana’s balance sheet by 2032.

“Government has backed that commitment with action. In March this year, government issued a GH¢5 billion bond for the recapitalisation of the Bank of Ghana,” he said.

“This marks the beginning of a broader phased strategy to systematically restore the Bank of Ghana’s balance sheet and financial strength by 2032.”

He added that another allocation would be included in the 2027 Budget to continue the recapitalisation process.

“In next year’s budget, we will make another allocation to further recapitalise the central bank,” he said.

Recapitalisation means providing additional financial support to an institution to strengthen its capital and improve its ability to operate effectively.

The Bank of Ghana recorded significant financial losses in recent years, partly because of its role in supporting the government during Ghana’s economic crisis and the impact of the domestic debt restructuring programme.

The recapitalisation plan is therefore expected to rebuild the central bank’s capital base, strengthen its balance sheet and ensure it has enough financial capacity to perform its responsibilities.

These responsibilities include controlling inflation, maintaining stability in the banking sector, managing monetary policy and supporting sustainable economic growth.

Mr. Ampem said a financially strong and independent central bank is important for maintaining investor confidence and protecting the stability of the financial system.

A stronger Bank of Ghana would also be in a better position to manage inflation, respond to economic shocks and ensure that banks and other financial institutions operate within a stable environment.

The announcement was made during the 50th anniversary celebration of rural banking in Ghana.

The event also marked the official conversion of Rural and Community Banks into Community Banks under a new regulatory framework introduced by the Bank of Ghana.

The reforms are expected to improve governance, strengthen the operations of the banks and expand access to financial services across the country.

Community Banks are particularly important in areas where larger commercial banks have limited operations.

They provide banking services to farmers, small businesses, traders and individuals in rural and underserved communities.

The new framework is also expected to position Community Banks to play a greater role in financing agriculture, supporting small businesses and promoting local economic development.