Home News Finance Liberian Government Denies Defaulting On Payments After World Bank Suspends Funding
FinanceWorld

Liberian Government Denies Defaulting On Payments After World Bank Suspends Funding

368
Liberian Government, Joseph Boakai (Left).

The Liberian government has denied defaulting on payments after the World Bank suspended the country’s access to funding.

The World Bank told FrontPage Africa that as of August 15, 2024, Liberia’s repayment obligations had been overdue for 60 days, leading to a halt in the withdrawal of funds, which include credits, grants, and trust funds.

However, the Liberian Ministry of Finance and Development Planning (MFDP) in a statement, said that the government has not defaulted on its obligations to the International Development Association (IDA), the primary financing arm of the World Bank for low-income countries. The ministry said that the delays in loan payments were due to logistical issues, not an inability or unwillingness to pay.

MFDP stated that President Joseph Boakai’s administration has paid a total of $44.26 million since January 2024, which includes $23 million in arrears from 2023 left by the previous administration and $21 million in external debt repayments due this year.

The ministry further explained that the Central Bank of Liberia (CBL) had faced challenges in repayment due to changes in its external transfer schedule. The Federal Reserve Bank of New York reduced the bank’s transfer days from five days a week to two days following irregular transactions before the Boakai administration took office in January 2024.

The ministry clarified that some IDA loan repayments did not align with the new transfer dates, which led to the misunderstanding that Liberia had defaulted, the ministry said.

Nevertheless, the World Bank said it would support Liberia financially once the overdue debts are cleared.

Read: Burkina Faso Urges Unity After Terrorist Attack In Centre-North Region

ECOWAS To Visit Liberia After Weah Files Complaint Against Government

About The Author

Related Articles

FinanceNews

Stephen Akintayo Advertises $18,000 Mentorship Programme Amid Multiple Fraud Allegations

Nigerian entrepreneur Dr. Stephen Akintayo has been criticised after launching a high-priced...

FinanceNews

China to Invest $950 Million in Kenya’s Manufacturing, Agriculture and Tourism Sectors Following Ruto’s Visit

Kenyan President William Ruto has signed a $950 million agreement with China...

Chief Justice Gertrude Suspended
NewsWorld

Ghana’s President Mahama Suspends Chief Justice Gertrude Torkornoo Over Misconduct

Ghana’s President, John Mahama, has suspended Chief Justice Gertrude Torkornoo following some...

EventsWorld

GWR: Tunde Onakoya Crowned New World Record Holder For Longest Chess Marathon

Nigerian chess player Tunde Onakoya has officially been recognised by Guinness World...