An economics professor and dean of the University of Cape Coast Business School, Professor John Gatsi, has said that LGBTQ was not one of the conditions for Ghana regarding seeking the International Monetary Fund’s (IMF) external credit facility support.
Prof. Gatsi, therefore, described the IMF’s comments following the passage of the Proper Human Sexual Rights and Ghanaian Family Values Bill, commonly called an anti-LGBTQ+ bill, as “statements of interest”.
According to a Bloomberg report, the Bretton Wood Institution, in a statement, noted, amongst other things, that, “its internal policies frown on discrimination based on personal characteristics, including gender, gender expression, or sexual orientation.”
“Diversity and inclusion are values that the IMF embraces,” the Fund emphasised.
However, Prof. Gatsi, speaking on TV3’s Ghana Tonight programme believed that Ghana’s finance ministry was being used to “blackmail us to support the President not to sign the bill”, passed by parliament.
He further noted there appears to be a “heavy dose of lobbying” going on in these last minutes of the anti-LGBTQ bill becoming law.
“When we went to the IMF, there was no condition regarding LGBTQ issues”, the economics professor said.
“In fact, when the World Bank was giving us [Ghana] money, the only thing that they were waiting for was the signing of the IMF deal that opened the door for them to provide those credits that they’re providing to us”, he told Alfred Ocansey on Ghana Tonight yesterday [March 4].
Prof. Gatsi continued by stating that “of course, those monies are not free money, we are going to pay back those monies, and the only condition, according to him, was for the parliament of Ghana to consider those loans and approve them, which has been done long ago.
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In a financial report presented to President Akufo-Addo, Ghana’s finance ministry stated the country could lose over US$3.8 billion in World Bank financing, urging the President not to assent to the anti-LGBTQ+ bill.
Some of the areas the Finance Ministry feared World Bank financing could be cut include the US$300 million First Ghana Resilient Recovery Development Policy Operation.
Another US$300 million on-going negotiation for the Second Ghana Resilient Recovery Development Policy Operation, and another US$250 million for the Ghana Financial Stability Fund.
Also, the finance ministry feared the disbursement of US$2.1 billion for on-going projects and another US$900 million worth of projects would cease when the bill becomes law.
Furthermore, Ghana’s financial position depends critically on IMF support. The nation sought a bailout after defaulting on its debt, which it’s now in the process of restructuring, and relies on the fund for access to vital foreign exchange.
Following an economic crisis, the West African nation sought an IMF bailout. The first and second tranches have been disbursed to the Bank of Ghana’s account.
However, it is uncertain if the review and approval of the third tranche would be affected should the bill become law.