IMF expresses concerns over Ghana’s anti-LGBTQ bill, cautions on economic implications

The International Monetary Fund (IMF) has voiced its vigilance over recent developments in Ghana after lawmakers approved a bill proposing up to three years of imprisonment for individuals identifying as LGBTQ.

In a statement from its Washington headquarters, the IMF emphasized its commitment to diversity and inclusion, citing these values as integral within the institution.

The lender highlighted its internal policies against discrimination based on personal characteristics, including gender, gender expression, or sexual orientation, asserting that diverse and inclusive economies tend to thrive.

The legislation, passed with bipartisan support, not only criminalizes LGBTQ identification but also targets the financing of LGBTQ groups and sanctions discrimination against them. President Nana Akufo-Addo’s endorsement is required for the bill to become law.

The IMF acknowledged the significance of the situation and expressed close observation of events in Ghana. However, it refrained from commenting on the bill until it is signed into law, emphasizing the need to thoroughly assess its economic and financial implications.

Ghana’s financial stability, crucially tied to IMF assistance amid debt restructuring, adds complexity to the situation. The IMF had agreed to release a second tranche of $600 million to Ghana earlier this year.

Ghana’s dollar bonds experienced a decline following the news of the anti-LGBTQ legislation, ranking as the second-worst performers in a Bloomberg index monitoring emerging-market sovereign hard-currency debt.

All 14 of Ghana’s dollar notes saw a drop in value, with bonds maturing in 2034 experiencing the most significant impact, reaching their lowest level since January 12.