Our Temporary Advance to BOG Was Due to COVID 19 - Finance Minister

The Minister for Finance, Ken Ofori Atta has said the devastating impact of the COVID-19 pandemic required urgent action to contain its negative and harsh impact on livelihoods. 

According to him, as part of measures to mitigate the impacts of the COVID-19 on public finances, the Minister for Finance, the Government of the Bank of Ghana, the Controller and Accountant General triggered the Bank of Ghana access purchase program in line with section 30 clause 6 of the BOG Act 2002 (Act 612) to provide the government with 10 billion Ghana cedis through the purchase of COVID-19 relief forms to help finance COVID 19 and related residual expenditure.

His comments come on the back of an urgent question filed by the Minority Leader, Haruna Iddirisu asking the minister the total amount of temporary advances from the Bank of Ghana to the government for the 2020 Financial Year. 

“...to ask the Minister of finance the total amount of centrally advances from the Bank of Ghana to the government of Ghana for the 2020 financial year,” he asked.

Responding to the question, the Minister said the money has a two-year moratorium and has said the 10billion cedis was issued in two trenches - the first of c5.5billion was issued on 15th may 2020, and the final trench was issued was on 9th September 2020. 

“Since the facility was raised under section 30 clause of Acts 612 which relates to foreign under emergency, the facility was captured as a long term facility and not subject to section 30 clause 3- where repayment has to be done within 3 months after grants of the advance,” he said.

However, the Minister was quick to add that the first repayment will be reflected on the 2022 budget statement and that there were no other advances in 2020.

 Ahenkorah Odura Mary, Accra