Despite the Ellen Johnson-Sirleaf Administration's much publicized attainment of debt waiver from international partners and friendly countries, the Liberian Senate Committee on Banking and Currency, has uncovered huge debts owed by the government.
The committee through its Chairperson Senator Isaac Nyenabo, has disclosed that the country's foreign and domestic debts currently stand at US$579.2 million.
Making the disclosure Tuesday during regular session, Senator Nyenabo explained that the stock of debt at the end of 2011 was US$579.2 million, which indicates 7.7 percent due to increase in both domestic and external financial obligations.
He told plenary that US$290.9 million or 12.8 percent was higher than the level recorded at the end of December, 2011, and that domestic debt amounted to US$288.3 million or 49.8 percent of total debt.
Said Sen. Nyenabo: "Domestic obligations to financial institutions stood at US$280.5 million, which has amounted to 97.3 percent of the total domestic debt stock."
Commenting on cash out flow; Nyenabo, a former Senate President Pro-tempore, said out flows remittance recorded a decline from US$1,362.3 million in 2011 to US$1,160.2 million in 2012, which is 14.8 percent, mainly due to a decrease in import payments.
"Foreign exchange inflows were higher than foreign exchange outflows in 2012; the net million flows in 2011 - US$101.1 million, compared with net flow of US$127.2 million," he asserted.
Sen. Nyenabo pointed out that the Central Bank of Liberia has begun a process to establish a collateral registry and upgrade the country's credit reference system with support from the International Finance Company (IFC).
"In this regard, some staff of the CBL concluded a study tour at the Bank of Ghana; the purpose of which was to study that country's collateral registry system with a view to introducing similar infrastructure to the Liberian Banking landscape", the Senator said, and added: "The desire to develop a collateral registry is in response to the problem in Liberia's credit environment, which constrains lending to Small Medium Enterprise System (SMES) in particular and the economy as a whole."
The Banking and Currency Committee noted that the Liberian economy is projected to grow at an average of 7.4 percent over the period spanning 2012 to 2015, which is expected to be delivered by continued rising growth in the agriculture, mining and service sectors.
It however noted that a major problem to domestic real (GDP) growth remains the sluggishness in global economic activity that had already led to fall in commodities' prices, including Liberia's major primary commodity exports; iron ore and rubber.
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What is this? Come on President Johnson Sirleaf, were are we going now? How can Liberia sign a millions of dollars in oil deal and still fall back into debt? I bet you guys enjoy owning Western Countries just to outsource our natural resources for cheap prices huh.
When Sen. Nyenabo and company are approving expenditures for frivolous projects that are not self-sustaining; when Sen. Nyenabo is approving crazy salaries for himself; when the senator is approving funds for vehicles, generators, and their repairs, he should also look at the budgetary line for the "Source of Cash." GDP = G + C + I + (X-M) “G” for government spending is “way..waaaayyyy” out there. “C” for total consumer consumption is low primarily due to expropriation of cash by Liberian leaders like the senator themselves. “I” for business investment. What Liberian-based business has the senator invested in since 1847? (X-M) for the net of exports and imports. What export business has the legislature encouraged so that the net is favorably? Without such commitments and policies by the legislature, we’ll always be in debt and the “DEBTOR” belongs to the “CREDITOR.”
The oil deal has not been ratified, so we haven't received the $50m funds yet for block 13. Once ratified, the proceeds can go to paydown debt or supplement our budget. I find it comical that people complain and say we should not sign up this oil deal and that the $50m is a small amount, but then in the same breadth complain our debt is too high.
What an irony ? Corrupt Legislatures talking about the country's debt. Who is to be blame for that kind of mis- appropriations of funds ? Senators demending more free gas slips, payments of their huge staffs ( one senator has over 4 persons, at times,up to 10 persons working in their single office). The most important brunch of Government is the most corrupt. Instead of them pushing for price countrol of fuel, food comodities, reductions in transportation fares, they are complicent about the ordinary people. 5% living above their means through corruption while the rest struggles to make ants meat. You Legislatures are one of Liberia's greatest stumbling blocks to progreess. To address any debt issues, there are few in the senate and House of Representatives, that are more sincere. I call on those God fearing ones, to have some ethics proposal, to reduce how much gas and how much employees can work in a single Senator or Representative office.