03/10/2023
The Bank of Ghana is to know that the application of accounting standards, such as IFRS 9, to estimate expected credit losses on government debt held by a central bank can result in potential losses due to the uncertain and subjective nature of credit risk assessment. Going forward, since steps weren’t taken to mitigate these risks, the bank of Ghana should enhance their credit risk assessment frameworks, improve data collection and analysis capabilities, increase transparency, and review methodologies and assumptions regularly.
The Governor must resign though since Central banks typically hold government debt, which is subject to political and policy risks. If the government implements unfavorable policies or is involved in political instability, the creditworthiness of the government debt can deteriorate. And it is the job of the governor to keep the government in check; his inability to keep the government in check is worsening our woes as a country
