As Liberia faces funding constraints, the International Monetary Fund has disclosed in the first review of its three-year lending and fiscal program with the West African nation that there are firm commitments from the World Bank and European Union to provide budget support in 2025.
There are good prospects of adequate financing for the remaining program period beyond the upcoming 12 months, Fund said.
On account of those commitments, Liberia with a $5 billion economy anticipates about $100 million to finance its $880.7 million budget for the 12-month period end Dec. 31.
“In addition to the budget support loan approved on December 4, 2024, the WB is planning to provide a budget support loan of about US$40 million in 2025, while the EU is negotiating with the authorities to resume its budget support operations in the form of grants (€56 million) over the period of 2025-27,” the Washington based lender reported.
“Other development partners including African Development Bank (AfDB) are also considering budget support for Liberia, but no firm commitments have been made so far.”
Liberia is amongst developing countries hard hit by the United States aid freeze policy. On account of President’s Donald Trump’s “stop work” directive, the country stands to lose about $201.2 million, which the United States Agency for International Development disbursed as at Jan.1 for this year alone, according to a 14-page document Oracle News Daily has seen.
Next to World Bank, USAID is second largest contributor of aid to Liberia, spending $961.8 million between 2014 and 2024. The agency currently runs 105 active projects focusing on health, education, agriculture and energy amongst others.
On Feb. 28, the Diplomatic Community, led by UN Resident Coordinator Christine Umutoni met in Monrovia and discussed the impact of the aid crisis with Finance and Development Planning Minister Augustine Ngafuan.
The Diplomatic Corps, including Ambassadors from Cameroon, Nigeria, the EU, Germany, the UK, and UN Women, reaffirmed their support for Liberia during this difficult time, the Ministry of Finance said in a statement.
“the Ambassadors asserted that their countries will stand with Liberia in thick and thin.”
