Liberian Observer (Monrovia)
7 November 2007
Monrovia — Fresh from the annual meeting of the World Bank and the International Monetary Fund (IMF) and other major institutions in the United States, Finance Minister Antoinette M. Sayeh on Monday outlined a few remaining obstacles to the country's drive towards debt relief.
Addressing a news conference at the Finance Ministry in Monrovia, Minister Sayeh said there were a few remaining hurdles to the country reaching Highly Indebted Poor Countries (HIPC) decision point.
"There is still a funding deficit at the IMF of approximately US$28 million," she disclosed.
She added that the money was not yet fully available to pay for Liberia's arrears and debt relief from the IMF.
Additionally, she added, there was a deficit at the African Development Bank (ADB) of US$35 million.
"We are currently working with the help of our international friends to attempt to close this gap, a process that we hope will be completed soon," she stressed.
"Liberia has moved very close to clearing its arrears to the IMF, World Bank and the African Development Bank(ADB).
"We are also potentially close to reaching the 'decision point' of the HIPC initiative," Dr. Sayeh further told journalists.
At 'decision point,' the Minister explained, Liberia's debt service payment would begin to be waived, but the debt stock - the balance of the debt would remain.
In Washington DC, Sayeh pointed out, Government also negotiated arrears clearance document with the World Bank which would allow the Bank to clear the country's debt with an exceptional grant of about US$501 million.
She intoned that the document would be finalized shortly after the necessary funding at the IMF and the ADB was secured.
Hear Sayeh: "This is a time for guarded optimism. What we have worked for so long to achieve - debt relief for Liberia - is very close. We are not there yet; however, once we reach the decision point, we must also continue to work to reach our HIPC completion point." Defining 'decision point' Minister Sayeh asserted that it is the point at which debt relief becomes irrevocable.
"It is only then that we will truly free ourselves of the financial burdens of the past," she declared.
Minister Sayeh emphasized the need for the implementation of Government's Poverty Reduction Strategy for a full and satisfactory performance under a new IMF program because, according to her, that, among others, was a critical element to achieving debt relief.
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