MONROVIA, Liberia
The World Bank has suspended Liberia from accessing "unwithdrawn loans" due to the failure of President George Weah's administration to service previously disbursed loans.
The Bank's decision, which
raises concerns about the country’s economic stability, comes as the outgoing
Weah administration is 60 days behind on its debt repayment.
Ousmane Diagana, the World
Bank Vice-President of the Western and Central Africa region, noted in a
statement that the suspension decision comes after the outgoing Weah
administration failed to meet its debt payment obligations, despite Finance
Minister Samuel Tweah being notified ahead of time on October 31.
“Effectively from November 15,
the right of the respective borrower to make any further withdrawal of
unwithdrawn amounts under the disbursing loans and the right to make any
further withdrawal of unwithdrawn amounts under the trust fund grants and loans
are collectively suspended,” Diagana added.
“We sincerely hope that all
such payments will be cleared soon to allow the resumption of withdrawals for
the execution of the important operations the Bank has been supporting.” Said
Diagana's letter to Liberia’s Minister of Finance, Samuel D. Tweah Jr., dated
November 15.
According to the letter, the
suspension would affect financing from the International Development
Association, Project Preparation Facility Advances, and Institutional
Development Fund grants.
The suspension, the letter
added, is also expected to affect other grants and loans financed under trust
funds administered by the Bank, which might be made to or guaranteed by Liberia
or other recipients for projects carried out within the country.
Diagana said the World Bank
regretted having to take such action but emphasized that the suspension would
only be lifted once all outstanding payments are settled, expressing “Sincere
hopes for a swift resolution to allow the resumption of withdrawals, supporting
the crucial operations the Bank has been backing in Liberia.”
When contacted for clarity,
the World Bank Liberia office said that the suspension, would affect the
incoming government of President-elect Joseph Boakai.
“Liberia has reached 60 days
overdue on its debt repayment to the World Bank,” the institution told the
Daily Observer in an email response. “The Bank’s ability to mobilize resources
for the benefit of the country and its people, depends critically on the
punctual servicing of debt to the Bank. We hope that the arrears situation can
be resolved promptly so that operations can resume for the benefits of the
people of Liberia. The World Bank has been a long-standing partner of Liberia
and reiterates its commitment to support it to overcome the development
challenges the country is enduring.”
No comments:
Post a Comment