He made this known when he delivered the 2019 mid-year budget review on the floor of Parliament on Monday.
According to him, about 3000 jobs in the financial sector have been saved due to government’s intervention.
He was, however, quick to point out that it could cost the country between $3 million to $4 million to clean up the financial sector.
“And, let me be very clear here, we were at the precipice of a major fiscal meltdown and let no one indulge in self-serving oratory,” Mr. Ofori-Atta said.
“The end cost may be anywhere from USD 3 to 4 billion, a poison pill from the previous Government.”
Already, the government has provided GH¢11.2 billion and GH¢1 billion to secure depositors’ funds of banks that have become insolvent and to also clean up the Microfinance sector.
Mr. Ofori-Atta explained that, although the Bank of Ghana has taken some bold steps, there are still challenges facing the economy.
He said government’s swift intervention in the financial sector has, however, helped restore public confidence in the banking system.
“The threats posed to the stability of the financial system and the economy at large were enormous, justifying the bold actions taken by the Bank of Ghana. The Government has demonstrated its commitment to providing timely relief to depositors whose funds were at risk as a result of the demise of the defunct banks and SDIs.
“Government’s actions have restored confidence in the banking system. Through the Government’s interventions, significant deposits held by some 2,655,100 depositors (1,525, 550 bank depositors and 1,129,820 MFI depositors) have been saved. Over 3,000 jobs have also been saved,” the Finance Minister added.