The bank said this in a statement dated February 9, 2023.
BPK Governor, Dr. Ernest Addison, said the economy would have been destabilized and come to a halt if the outfit did not step up to support the government.
Speaking at SIGA’s annual stakeholder meeting in Kwahu Abetifi in the Eastern Region on Thursday, Dr Addison said: “We need to remember where we came from in early 2022 when we lose access to capital markets.
“This is a government that has access to the capital market of at least $3 billion per year, but we start 2022 with an economic downturn and, therefore, funding sources are not available.
“Additionally, revenue measures are not working, with revenue projections falling short of target.”
“All this means that the government’s finances are in trouble, because the expenditure needs to be financed, but there is no money,” he said.
He said the central bank should step in to help the country through tough times.
“It is important to recognize that we can get through this crisis sooner than we leave; if the BoG does not step in, investors in government bonds will not be paid interest,” he added.
The central bank is currently under pressure over its decision to support the government’s budget in 2022, with some describing the decision as reckless.
On a net basis, the BoG last year financed the government to the tune of GH¢44.5 billion.
The governor said that the situation of the central bank financing the government, however, became unsustainable by mid-2022, hence the government’s decision to approach the International Monetary Fund (IMF) for support.