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The Finance Ministry is raising concerns about the implications of President Akufo-Addo's potential assent to the recently passed Anti-LGBTQ+ bill.
Days after the bill was passed, the Ministry outlined the negative implications of the document on its expenditure, key government plans, and projects.
The office is urging President Akufo-Addo to hold off on signing the bill into law as it may cost the country greatly.
These risks include a potential loss of $850 million in budgetary support from the World Bank this year alone.
In the 5-page document, the Ministry explained that “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 the country's reserve position.
Over the next six years, the Ministry explained that “Ghana is likely to lose US$3.8 billion in World Bank Financing.”
Below is the full text of the World Bank implications projected by the Ministry;
i. The expected US$300 million financing from the First Ghana Resilient Recovery Development Policy (Operation Budget Support) which is currently pending Parliamentary approval might not be disbursed by the Bank when it is approved by Parliament.;
ii. On-going negotiations on the Second Ghana Resilient Recovery Development Policy Operation (Budget Support) amounting to US$300 million may be suspended:
iii. On-going negotiations for US$250 million to support the Ghana Financial Stability Fund
may be suspended;
iv. Disbursement of undisbursed amounts totalling US$2.1 billion for ongoing projects will be suspended; and
v. Preparation of pipeline projects and declaration of effectiveness for two projects totalling US$900 million may be suspended. Full details of the World Bank portfolio are attached as Appendix 1 & 2.
vi. 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 in 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.
It comes in the wake of warnings by the United States of dire implications for the Ghanaian economy after Parliament enacted a Proper Human Sexual Rights and Ghanaian Family Values Bill.
Already, some human rights groups in Ghana have threatened to head to the Supreme Court if President Akufo-Addo gives assent to the Proper Human Sexual Rights and Ghanaian Family Values bill passed on Wednesday.
On the back of all these, the Finance Ministry is urging the President to engage stakeholders including faith-based organisations to communicate the bill's implications.
Aside from that, it called for effective engagement with conservative countries including Arab countries and China.
"This could help trigger resources to fill in the potential financing gaps to be created."
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