The Ministry of Finance is warning that if President Akufo-Addo approves the anti-LGBTQ+ Bill recently passed by Parliament, Ghana could face serious financial consequences.
The Ministry predicts a potential loss of $3.8 billion in financing from the World Bank over the next five to six years.
This includes a $600 million cut in budget support and a $250 million reduction for the Financial Stability Fund in 2024 alone.
The loss of these funds could negatively impact Ghana’s foreign exchange reserves and exchange rate stability.
The Ministry outlines specific consequences, such as the potential suspension of ongoing negotiations and disbursements for various projects, totaling $2.1 billion which all could be lost only if the bill is approved by the President.
If these financial resources are lost, there will be a gap in the 2024 budget, requiring the government to find additional domestic revenue or make significant spending cuts.
However, failure to address this could undermine the government’s ability to meet its 2024 budget targets and may derail the IMF-ECF Programme.
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