The Inquirer (Monrovia)
17 March 2008
The Government of Liberia through the Ministry of Finance and the local office of the International Monetary Fund, have announced that that the country's arrears of SDR 543 million, or nearly US$890 million to the IMF has been cleared.
This latest exercise has made the country to reach the Decision Point (or point at which interim debt relief is provided) under the Enhanced Heavily Indebted Poor Country (HIPC) Initiative.
Announcing the decision at a new s conference last week Friday, Finance Minister, Antoinette Sayeh, said the decision by the IMF toward Liberia will come into effect after the World Bank's Board meets on March 18 this year.
Minister Sayeh, who was flanked by the IMF Resident Representative, Michael Thurkur, Minister Seyeh said Until the time of the announcement, Liberia had been in arrears to the IMF since 1984 but that the new decision means that the country is now a fully paid up member of the IMF with full voting and related rights and access to IMF financial resources for the first time in twenty-four years.
Minister Sayeh said that the decision by the Board of the IMF followed the clearance of Liberia's large arrears as well as payments for its quota increase from a bridge loan provided by the Government of the United States of America and as such, all sanctions by the IMF against Liberia have been lifted.
She added that the IMF Executive Board also approved new financing arrangements under the Poverty Reduction and Growth Facility and Extended Fund Facility in support of the government's economic program covering 2008-10.
The decision, she said, would now pave the way for Liberia to start receiving interim assistance and finalize negotiations with its other bilateral and commercial creditors.
Minister Sayeh stated further that it would also help the Government implement its ambitious reform program under the Poverty Reduction Strategy, which includes public financial management, governance and anti-corruption matters and social sector reforms.
For his part, the IMF Resident Representative said the decision of the Executive Board of the IMF would allow an immediate disbursement of an amount equivalent to SDR 550.03 million about US$900 million under the arrangements with the remaining SDR 31.76 million, which would be drawn in six installments. He then buttressed all the comments made by Finance Minister Sayeh that Liberia has taken the necessary steps to reach the Decision Point under the enhanced HIPC initiative.
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