G8 Nations Help Clear Liberias External Debt
The worlds eight most industrialized countries are giving Liberia more than 300 million US dollar to help clear its external debt arrears, the government in Monrovia said Wednesday.
“G8 countries have announced a contribution of 324,5 million dollar in Special Drawing Rights (SDR). The amount will go towards financing the cost of clearing Liberias arrears (gæld) at the International Monetary Fund (IMF)”, a statement said.
The contribution amounts to 60 percent of the total debt Liberia owes the IMF.
Liberia said Germany, the current president of the G8, was working hard at having the poor wartorn West African countrys entire external debt rapidly cleared.
The G8 pledges to “continue to press for a solution that will allow Liberia to gain entry as soon as possible to the Heavily Indebted Poor Countries (HIPC) debt relief initiative”, said Liberia.
Germanys latest effort to tackle Liberias debt burden comes just weeks away from Chancellor Angela Merkels visit to Liberia, slated for early October.
A communication from the German Minister for Development Cooperation, Heidemarie Wieczorek-Zeul, addressed to Liberian President Ellen Johnson Sirleaf, disclosed that Germany and some G8 countries are also currently holding discussions with other countries to achieve a rapid solution to the Liberian debt issue and to ensure that the rest of the costs are covered.
Meanwhile, Wieczorek-Zeul has expressed confidence that an agreement can be reached soon between the African Development Bank (ADB), the donor countries and Liberia, regarding the debt the country owes the ADB.
The German chancellor said her government has informed the Bank that it would provide 7 million euro as its contribution to help offset the ADB debt, and urged the Bank to take the necessary steps that will allow a decision to be reached very soon.
Kilde: www.worldbank.org
