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Business News of Sunday, 26 January 2020


BoG can’t print money to pay depositors of collapsed banks – Bawumia’s spokesperson

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Dr Gideon Boako, spokesperson the Vice President, has said the government cannot ask the Bank of Ghana (BoG) print money to pay depositors of the collapsed financial institutions in the country.

He said if that is done, it will amount to the central bank financing government expenditure, an action he said will violate the BoG’s Amendment Act.

He was reacting to suggestions by Economist, Kwame Pianim, that the government should approve the printing of money to settle claims of depositors hit by the recapitalization exercise.

Mr Pianim told Citi FM that :“My suggestion was to have let the Bank of Ghana find a means to pay the affected customers even if it involved printing of money…We are making it difficult for the NPP to win this election.”

But speaking on The Point of View on Citi TV on Wednesday January 22, Dr Boako said : “I don’t think government should do it through the printing of money as Mr Kwame Pianim is saying because that will amount to central bank financing of government expenditure .

“Don’t forget that there has been a law that has been passed which is the Zero Financing.”

He however, stated that government was committed to pay all the customers affected by the cleanup exercise.

“But government is committed to doing it, government is going to look for money to pay but I don’t think it has to be done through the printing of money,” he said.