Member of Parliament for Asante-Akim North, Andy Appiah Kubi has allayed fears that Ghana’s passage and implementation of the Anti-LGBTQI bill will constraint financial support from the IMF.
The Legislator in an interview on TV3’s Keypoints explained that at the time of the negotiations between Ghana and IMF, any passage of the bill was not included.
He said the IMF will only be involving in a breach of contract if it decides to suspend its financial assistance to Ghana because of the passage of the Anti-LGBTQI bill.
According to him, the IMF cannot suddenly suspend its programme because it had already disbursed some tranche of the funds.
“We have terms of the arrangement within the IMF programme and it did not include our passage of this bill because at the time they were negotiating it was not an issue that was raised.
“So, if IMF says because we have passed this bill, we are not going to respect a contract that is already in motion and have already disbursed part of the amount so what will happen to the amount that has already been disbursed. Is it the case that they abrogate the contract at their expense in respect of the payment and do we have any rights under the agreement we had with them.
“These are all contractual relations and so therefore we cannot purport to import new provisions into an arrangement that is already delivered and in motion so that fear of losing grounds with the IMF programme is unfounded,” the MP noted on Saturday, March 9.
Meanwhile, the Ministry of Finance has pointed out dire implications of assenting to the anti-LGBTQ+ Bill passed by Parliament.
In a brief on the implications of assenting to the Bill by President Akufo-Addo, the Ministry of Finance said the country stands to lose huge financial support from the Bretton Woods institutions.
“In total, Ghana is likely to lose US$3.8 billion in World Bank Financing over the next five to six years. For 2024, Ghana will lose US$600 million budget support and US$250 million for the Financial Stability Fund. This will negatively impact Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore up the country’s reserve position,” part of the brief sighted by 3news.com reads.
However, some experts have criticised the IMF stating that its assertion is premature and unjustified.
Anti-LGBTQI bill: Finance Ministry’s caution came too late – Pianim