IMF ready to cancel Liberia debt
The International Monetary Fund says it has secured sufficient funding to start canceling Liberia’s debt to the international agency.
The International Monetary Fund says donor nations have pledged $842 million, which will start the process once the pledges are honored. IMF chief Dominique Strauss-Kahn said it was a “critical step... toward comprehensive debt relief” for Liberia.
Liberia is struggling with the legacy of 14 years of brutal civil war, which ended in 2003, with 270,000 dead. Liberia has found it difficult to get financial support because of a total international debt estimated to be $4.5 billion. The IMF debt relief plan involves a three-year growth program to reduce poverty and help for Liberia to finance its remaining obligations. The money to pay off the debts is understood to come mainly from existing IMF reserves, and an additional $71 million from the G8 group of industrialized nations.
Last month President Ellen Johnson-Sirleaf visited Washington and argued Liberia had met political and economic requirements to qualify for help with its debts. “President Johnson-Sirleaf has done a tremendous job in a difficult situation and this breakthrough will help all of us to offer her and Liberia more support,” World Bank President Robert Zoellick said in a statement. (BBC)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.