Finance Ministry shuts 3,160 gov’t accounts with the BOG

quist 19:22 - 02 August 2016

The aim is to achieve a single treasury account in attempt to manage government’s funds more effectively.

The Finance Ministry has commenced processes to close over 11,500 multiple accounts in the Bank of Ghana, belonging to government.

It is also believed that the move will stop the practice of government borrowing its idle funds at commercial banks to finance its budget at an interest.

Finance Minister Seth Terkper revealed this at his presentation of the 2016 supplementary budget last week.

Out of the number of accounts at the BoG, 3,160 were closed and 700 have been set up under the Ghana Integrated Financial Management Information System (GIFMIS).

Work is currently going on to streamline the remain+ing 1,640 at the BoG and those at the commercial banks.

This, he said, “Will prevent these funds remaining dormant or idle, while government borrows sometimes its own funds to finance the budget”.

“This is also to pool and manage all government accounts in all banks—that constitute the consolidated and, where relevant, other public funds—into one account”, Mr Terkper said.