'import type * as namespace' no longer can be used with 'implements'

[mjbvz]

TypeScript Version: 3.8.0-dev.20200124

Search Terms:

• import type
• implements interface

Code
For the TS:

import type * as iface from './iface';

class Foo implements iface.IFace {
    foo(): void {
        throw new Error('Method not implemented.');
    } 
}

Expected behavior:
No errors. iface is only being used as a type, not a value

Actual behavior:
Error:

'iface' cannot be used as a value because it was imported using 'import type'

This code previously did not produce errors in TS 3.8-beta