There’s no direct conditionality in IMF-ECF Programme relating to the passage of the Bill – Finance Ministry

New Finance Minister, Mohammed Amin Adam

The Ministry of Finance has indicated that there is no conditionality in Ghana’s deal with the International Monetary Fund (IMF) that should affect the deal because of the passage of the anti-LGBTQ+ bill by Parliament.

Ghana currently has an Extended Credit Facility (ECF) deal with the IMF that is expected to last for three years.

Following the passage of the country’s anti-LGBTQ+ bill in Parliament last week, there has been talk that the deal could be cancelled.

According to the Ministry of Finance, no conditionality in the country’s IMF-ECF deal relates to the passage of the bill.

Nonetheless, the Ministry has warned that there could be consequences.

“While no direct conditionality in the IMF-ECF Programme relating to the passage of the Bill has been identified, the principles of the current IMF-ECF Programme are built on predictable financing from Development Partners (Financing Assurances) including the World Bank funded Ghana Resilience Recovery Development Policy Operations (DPO).

“Hence the non-disbursement of the Budget Support from the World Bank will derail the IMF programme, which puts Ghana at risk of ultimately losing out on US $720 million which would have been disbursed after the second and third review,” the Ministry of Finance said in a paper sent to President Akufo-Addo.

In its paper, the Ministry of Finance said this will in turn trigger a market reaction which will affect the stability of the exchange rate.

These are contained in a paper sent by the Finance Ministry to President Akufo-Addo to caution him against assenting to the anti-gay bill.