BANK OF GHANA ACT - 2002 (ACT 612)

    Section - 30 - Temporary advances

    (1) The Bank may

    (a) make advances and loans to the Government on overdraft or in any other form that the Board may determine;

    (b) make direct purchase from the Government of treasury bills or securities representing obligations of the Government.

    (2) The total of the loans, advances, purchase of treasury bills and securities together with money borrowed by the Government from other banking institutions and the public at the close of a financial year under subsection (1) shall not exceed 10 percent of the total revenue of the fiscal year in which the advances were made.

    (3) An advance made under subsection (1) shall be repaid within three months after the grant of the advance, and where that advance remains unpaid after the due date, the power of the Bank to make further advances in a subsequent financial year shall not be exercised unless the amounts due in respect of outstanding advances have been repaid.

    (4) Where repayment of the advances and overdrafts is unduly delayed, the Bank may transfer the debt to the public through the sale of treasury bills.

    (5) The Bank shall charge interest on advances granted under this section at the rate that the Board in consultation with the Minister shall determine.

    (6) In the event of any emergency, the Governor, the Minister and the Controller and Accountant-General shall meet to decide the limit of borrowing that should be made by Government and the Minister shall submit a report on the issue to Parliament within seven sitting days.