IMF Deal Could Be Derailed By Anti-LGBTQ Bill, Finance Ministry Sends Warning In New Assessment

• The Ministry of Finance has warned that approving the anti-LGBTQ could derail Ghana's programme with the International Monetary Fund
• The Ministry of Finance has cautioned President Akufo-Addo against assenting the recently passed bill
• The ministry also said Ghana will likely lose $3.8 billion in World Bank financing over the next five to six years

The finance ministry has warned that Ghana’s International Monetary Fund programme could be derailed if the recently passed anti-LGBTQ bill is signed into law.

The finance ministry said there was direct conditionality relating to the bill from the IMF, but indirect factors would negatively affect the support programme.

In an assessment of the bill's financial impact, the ministry explained that the principles of the $3 billion programme are built on predictable financing from Development Partners like the World Bank-funded Ghana Resilience Recovery Development Policy Operations.

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"Hence the non-disbursement of the Budget Support from the World Bank will derail the IMF programme. This will in turn trigger a market reaction which will affect the stability of the exchange rate."

The IMF recently said it will not yet comment on the anti-LGBTQ bill.

The fund said it would wait until the bill was signed into law and thoroughly assessed.

In a statement, the IMF underscored its commitment to values of diversity, inclusion and respect for human rights.

Losses from the World Bank

The ministry said Ghana will likely lose $3.8 billion in World Bank financing over the next five to six years.

For 2024, the finance ministry said Ghana would lose $600 million in budget support.

According to the finance ministry's recent assessment, Ghana would also lose $250 million for the Financial Stability Fund.

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In its conclusion, the finance ministry said President Akufo-Addo may have to defer assenting to the Bill until the court rules on the legal issues tabled by key national stakeholders.

US reacts to passage of law

YEN.com.gh reported that the US released a statement that was critical of Ghana's Parliament's passage of the anti-LGBTQ bill.

A US Department of State statement noted that the bill threatens fundamental human rights.

The UN High Commissioner for Human Rights, Volker Türk, also said the bill's passage was profoundly disturbing.

Source: YEN.com.gh