The Ministry of Finance and Development Planning (MFDP) has clarified that the Government of Liberia has not defaulted on its outstanding loan obligations to the International Development Association (IDA) including the World Bank, dispel recent media reports suggesting that Liberia was suspended from the World Bank due to overdue loans.
According to the MFDP, the current administration under President Joseph Nyuma Boakai has made payments totaling $44.3 million to the IDA since January 2024.
This amount includes $23 million in outstanding payments from 2023 that were not made by the previous administration, as well as $21 million out of the scheduled external debt repayments due in 2024.
The ministry notes that so far, $12.19 million has been paid to the IDA, countering the claims of Liberia’s suspension from the World Bank.
The MFDP acknowledged the reduction in external transfer dates at the Central Bank of Liberia (CBL), which it says has posed challenges to the current administration.
This reduction in transfer dates, the ministry explains, is due to transfer risks resulting from poor management of external payments by the previous administrations at the CBL.
The ministry further reveals that the Federal Reserve Bank of New York, which handles international payments for the CBL, has reduced the weekly transfer period from five days to two days due to irregular transactions through the CBL in the period before the January 2024 transition of power.
This has led to some IDA loan repayments not falling on the CBL transfer dates, which has been wrongly interpreted as defaults by the government.
The MFDP emphasizes that the current administration’s debt management challenges are not limited to the $2.6 billion debt portfolio, including the $1.5 billion accumulated under the previous CDC government in just six years, compared to the $881.8 million during the entire twelve years of the first Unity Party administration.
Despite these challenges, the ministry assures the people of Liberia and the country’s development partners that the government remains committed to strengthening its relationships with the World Bank and other international partners, recognizing their critical roles in advancing Liberia’s development agenda.
The ministry’s priority, it says, is the promotion of the government’s agenda through development partnerships for sustainable development, a stronger and more stable economy, and an improved quality of life for all Liberians.
