Wednesday, 14th November 2007
Washington, D.C. - USA - Member states of the International Monetary Fund (IMF) have
made pledges totaling more than 842 million dollars, to provide debt relief for
Liberia.
IMF Managing Director Dominique Strauss-Kahn Monday announced in Washington,
DC, that the International Monetary Fund secured these financing pledges from
member countries as a deal to allow the Fund provide debt relief to Liberia.
A release from the Liberia Embassy in
Washington,
DC, quoted the IMF Managing Director as saying
that when these pledges are formalized, a process will be followed to clear the
arrears for
Liberia
to qualify for new Fund financing that will enable the delivery of Heavily
Indebted Poor Countries (HIPC) Initiative and other debt relief to the country.
This is one of the first concrete achievements for the new IMF director, who
took over his post on November 1.
The IMF boss noted that by clearing
Liberia's books of arrears accrued
over the war years, the deal will allow the struggling country to gain access
to loans and other assistance from the IMF, the World Bank and the African
Development Bank.
The Embassy further quotes Mr. Strauss-Kahn as highly praising the financing
breakthrough, noting, "Today's milestone is a critical step in moving
Liberia onto a
path toward comprehensive debt relief. We will continue to support the
post-conflict recovery, building on
Liberia's many achievements over
the past two years". According to him, "despite difficult conditions,
Liberia
has established an encouraging track record of macroeconomic management and
reforms."
The Managing Director offered his thanks to the IMF member countries for their
generous support, adding, "I would like to record my appreciation for the
leadership of President Johnson-Sirleaf and her economic team. I also wish to
acknowledge the efforts of many leaders around the world in this cooperative
effort, including the low income countries, as well as for the personal support
of Bob Zoellick at the World Bank."
Since the Administration of President Ellen Johnson Sirleaf, the IMF has
continuously provided tremendous supports to
Liberia through technical
assistance and policy advice. IMF staffs are currently finalizing discussions
with the Liberian authorities on a three-year, IMF-supported program, so that
Liberia can
build upon the initial economic recovery, to maintain the strong growth needed
to reduce poverty, and restore debt sustainability.
Liberia's
total international debt estimated to be $4.5bn.