Following disturbing reports from Bloomberg about the level of the central bank’s exposure to government debts and its effect on the entire banking sector especially if the current terms of the DDEP proposed by government is signed on by bond holders.
The seeming disregard for the BOG’s own rules which specifies clearly that limit of borrowing to the executive arm of government should not be more that 5% of the previous year’s total revenue should be a matter of concern to every Ghanaian.
In fact the BOG’s unsanctioned loaning of money for government business is a major cause of the unprecedented levels of inflation currently wiping away the disposable income of citizens. Dr. Abbey finds it puzzling that after pumping billions into the system at the blind side of parliament, BOG as the financial sector’s regulator turns around and increases policy rate as a mechanism to fight inflation caused by its own reckless actions.
Dr. Randy Abbey admits that the Central Bank should have come out with an official statement to either clarify or debunk the claims in the Bloomberg report by now. In the absence of such an official response, and as a matter of urgency, Dr. Ernest Addison who is the governor should be given the opportunity to throw more light on the bank’s debt exposure and the reasons such grave infractions are occurring under his watch.