The NEWS (Monrovia)
Doe S.K. Davies
8 May 2008
Monrovia — The International Monetary Fund (IMF) has stressed the necessity for the National Legislature to give early consideration to the enactment of key legislations necessary to maintaining the momentum of economic reforms and to enable Liberia reach the completion point under the Heavily Indebted Poor Countries (HIPC) initiative, which are key steps in securing further debt relief for Liberia.
Speaking recently at the end of a week-long IMF mission visit since Liberia's arrear clearance with the Fund earlier this year, Mr. Robert K.W. Powell, head of delegation noted that the extensive legislative agenda expected under the Liberian Government's Poverty Reduction Strategy (PRS) and the need for key legislations aimed at reforming the economy were highlighted during discussions with the Liberian Legislature.
He pointed out that it would be prudent for the legislators to give early consideration to the passage of the draft economic reforms laws including the Anti-corruption Act, Investment Act and the Act to amend the Revenue Code of 2000, among others.
"We are encouraged by the level of discussions held with members of the National Legislature including Speaker Alex Tyler and President Pro-Tempore of the Senate Isaac Nyenabo, and we are optimistic that they would do their best to achieve the expected legislative agenda aimed at enhancing the PRS and reaching the HIPC completion point," Mr. Powell indicated.
Powell: "We share the Liberian authorities' view that recovery will continue in 2008, with growth of about 8.8 percent, thanks to strong management of the economy. Inflation, however, is projected to rise to about 13 percent because of higher price and petroleum import prices, and strong domestic demand".
Notwithstanding, he said the mission supports the government's decision to help the poor by temporarily suspending taxes on rice imports, and its plans to fast-track local commercial production of rice.
"We discussed the government's recently published Poverty Reduction Strategy (PRS). The PRS lays out an ambitious, well-tailored program of reform to achieve higher and more inclusive growth, and progress in poverty reduction, over the next three years. The mission argued that to help reach these goals, the authorities should further refine the costing of PRS measures and that donors should align their commitment with the PRS priorities at an early stage. The Fund supports the PRS through the Poverty Reduction and Growth facility," Powell added.
The IMF Mission head also indicated that the government and the mission agreed on the importance of ensuring that the budget for fiscal 2008/09 should also be in line with PRS priorities, "and in light of the significant one-off revenue expected next year - that proposed current expenditures should be sustainable over the medium term".
For her Part, Finance Minister Dr. Antoinette Sayeh noted that the visit was the first IMF partnership mission since Liberia reached the decision point under the HIPC initiative and also the first since the new poverty reduction and growth facility program was approved by the IMF Board in mid-March this year.
She said the IMF mission had the opportunity to continue the dialogue with the Liberian Government authorities on the country's PRS that was completed last month, and added that they discussed the process of aligning the budget around the PRS and the challenges of finalizing the 2008/09 fiscal budget to ensure that donors align their commitments within the context of the PRS and its priorities.
Minister Sayeh also indicated that they discussed the IMF's support to the budget within the context of the PRS and growth facility as well as the critical roles of the Legislature and the civil society aimed at achieving the priorities of the PRS and growth facility.
She added that while in the country, the IMF delegation held fruitful discussions with Central Bank Governor Mills Jones, members of the legislature, and representatives of the civil society on the urgent need for key economic reforms within the scope of the PRS.
The IMF delegation departed Liberia last Friday.
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