IMF document shows government cannot restrict imports as part of bailout agreement

The International Monetary Fund (IMF) had agreed with the Government of Ghana that it cannot pass its proposed legislative instrument (L.I.) to restrict the importation of some goods into Ghana.

According to a report by myjoyonline.com, the IMF and the Government of Ghana agreed as part of the $3 billion bailout programme that Ghana cannot restrict the importation

Read full articleof goods during the implementation of the programme.

The report indicated that the clause in the bailout agreement that bars Ghana from imposing import restrictions can be found on page 76 of the programme document.

“No imposition or intensification of import restrictions for balance of payments reasons,” the document is quoted by myjoyonline.com.

The report also indicated that the ban on import restriction is part of four major restrictions the IMF deal places on the Government of Ghana.

It went on to list the restrict to Ghana as follows:

No imposition or intensification of restrictions on making payments and transfers for current international transactions.

No introduction or modification of multiple currency practices.

No conclusion of bilateral payments agreements inconsistent with Article VIII of the IMF Articles of Arrangement.

No imposition or intensification of import restrictions for balance of payments reasons.

Meanwhile, the government has announced that it has suspended its decision to introduce an L.I. which bars certain imports.

The government, through the Minister of Trade and Industry, Kobina Tahir Hammond, unsuccessfully tried to lay a legislative instrument (L.I.) to restrict the importation of 22 selected strategic products into Ghana after it was opposed by the minority caucus of the house.

Below is the list of items whose import the government was seeking to restrict:

FIRST SCHEDULE (regulations 1(a), 2 and 20)

LIST OF SELECTED STRATEGIC PRODUCTS

1. Rice

2. Guts, bladders and stomach of animals

3. Poultry

4. Animal and Vegetable Oil

5. Margarine

6. Fruit Juices

7. Soft Drink

8. Mineral Water

9. Noodles and Pasta

10. Ceramic Tiles

11. Corrugated Paper and Paper Board

12. Mosquito Coil and Insecticides

13. Soaps and Detergents

14. Motor Cars

15. Iron and Steel

16. Cement

17. Polymers (Plastics and Plastic Products)

18. Fish

19. Sugar

20. Clothing and Apparel

21. Biscuits

22. Canned Tomatoes

BAI/NOQ

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