Adoption by Parliament of amendments to the BoG Act, which would include i) elimination of central bank financing of Government, ii) removal of the voting rights of the MOF member of the Board, iii) disqualification of government members,
members of Parliament and civil servants from the Board and MPC, iv) removal of the provision allowing BoG to provide guarantees for loans granted by foreign institutions to government and government agencies; v) a requirement for the
government to recapitalize the BoG in the event that the BoG suffers losses, and vi) prohibition of the BoG from owning shares in financial institutions not related to supporting the Bank’s core functions (including disposing of existing shares after a
transitional period).
Introduced at R3. Rationale: strengthen the inflation targeting framework.