Report: Agreement between the IMF and the Ghana Government doesn’t permit import restrictions.

For an institution whose sole existence is based on bailing out struggling economies, it comes as a surprise to know that the IMF prevents sovereign nations from restricting imports on conditions. According to the existing agreement between the IMF and the Ghana Government

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The International Monetary Fund (IMF) and the Government of Ghana reached an agreement within the context of a $3 billion bailout program, stating that Ghana cannot implement its proposed legislative instrument (L.I.) to restrict the importation of certain goods.

The clause, found on page 76 of the program document, explicitly prohibits Ghana from imposing import restrictions during the program’s implementation for balance of payments reasons.

According to report on the document, four major restrictions imposed by the IMF deal on the Government of Ghana are as follows:

  1. No imposition or intensification of restrictions on making payments and transfers for current international transactions.
  2. No introduction or modification of multiple currency practices.
  3. No conclusion of bilateral payments agreements inconsistent with Article VIII of the IMF Articles of Arrangement.
  4. No imposition or intensification of import restrictions for balance of payments reasons.

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In the wake of this revelation, the government has announced the suspension of its decision to introduce an L.I. restricting certain imports. The attempt to introduce this legislation faced opposition from the minority caucus in the House.

Source: Ghanaweb