Ghana To Lose $3.8 Billion World Bank Funding Over Anti-LGBTQ+ Bill

Ghana to lose $3.8 billion World Bank funding if anti-LGBTQ+ bill is signed into law

A Finance Ministry document obtained by Reuters indicates that Ghana may lose $3.8 billion in World Bank funding if the anti-LGBTQ bill passed last week is signed into law.

According to the BBC, Ghana's financial authorities are recommending that President Nana Akufo-Addo delay the bill's enactment until the Supreme Court rules that it complies with the constitution.

The document, dated March, stated that it included recommendations for the president and summarized discussions between the finance minister, governor of the central bank, head of the tax authority, and other senior officials.

The legislation's approval by parliament occurs as the nation of West Africa attempts to recover from a severe economic crisis and debt default.

Also Read: Ghana Adopts Legislation That Outlaws Identifying As LGBTQ+

The West African nation is attempting to recover from a severe economic crisis and debt default, and the World Bank and $3 billion in IMF loans that were obtained last year are helping to make this possible. The bill's passage through parliament comes at this time.

Ghana is expected to lose US$3.8 billion in World Bank financing over the next five to six years, according to an internal document seen by Reuters from the finance ministry. This would have a detrimental effect on foreign exchange reserves and exchange rate stability.

It further stated that the IMF program would “derail” if World Bank funding was lost, causing a negative market reaction that would undermine exchange rate stability.

“A derailed IMF programme will have dire consequence on the debt restructuring exercise and Ghana's long-term debt sustainability,” it said.

“Our internal policies prohibit discrimination based on personal characteristics, including but not limited to gender, gender expression, or s+xual orientation. Like institutions, diverse and inclusive economies flourish.

“We are watching recent developments in Ghana closely. We cannot comment on a bill that has not yet been signed into law and whose economic and financial implications we have yet to assess,” IMF told Bloomberg in response to the bill.