Amin Adam runs to IMF to take action on BoG recapitalisation, gold sales and monetary risks

The Ranking Member on Parliament’s Finance Committee, Dr Mohammed Amin Adam, has called for urgent reforms in the treatment of Bank of Ghana finances under Ghana’s IMF-supported programme.

In a letter addressed to the IMF Mission Chief on May 2, he urged stronger transparency measures and tighter monitoring of fiscal risks ahead of the programme’s conclusion.

Dr Amin Adam recommended that the IMF require a transparent central bank recapitalisation plan based on the existing agreement between the Ministry of Finance and the Bank of Ghana. He said the plan should clearly outline financing terms, repayment structure and processes for parliamentary approval.

The Karaga Member of Parliament also called for the inclusion of central bank recapitalisation in Ghana’s fiscal risk analysis. According to him, the government’s medium-term fiscal framework must explicitly recognise the central bank’s negative equity as either a contingent or direct fiscal obligation.

He warned that failure to account for this could distort assessments of Ghana’s debt sustainability.

On gold-related transactions by the Bank of Ghana, Dr Amin Adam raised concerns about volatility and transparency. He noted that the economic net benefit of the gold programme is significantly lower than headline figures suggest.

He further called for improved disclosure of such transactions, including details on counterparties, approvals and risk control mechanisms.

Dr Amin Adam also criticised what he described as inconsistencies in programme implementation and policy guidance, arguing that such inconsistencies have not helped to build policy consensus in the country.

Despite the concerns raised, he acknowledged the contributions of the IMF, World Bank and other development partners. He, however, stressed the need to protect the prohibition on monetary financing and to strengthen safeguards beyond the programme period.