The International Monetary Fund (IMF – Valutafonden) has normalized its economic relations with Liberia, after more than 20 years, and approved a loan of 952 million US dollar and in addition, the IMF board has approved substantial debt relief for Liberia.
The IMF Executive Boards decisions allow an immediate disbursement to Liberia of some 900 million dollar, while the remaining 52 million will be drawn in six installments.
The approved IMF financial support includes a 391 million dollar, three-year arrangement under a poverty reduction and economic growth loan and a 561 million arrangement in support of the economic program covering 2008-2010.
Liberia has made “satisfactory progresses” on the road to reducing poverty and strengthening its economy, the IMF said Friday.
The West African country “has continued to make satisfactory progress in implementing its IMF staff-monitored program”, said Murilo Portugal, Deputy Managing Director at the IMF.
– This has helped to maintain macroeconomic stability, support the economic recovery, and strengthen public financial management and the financial sector.’ Portugal said the governments reform objectives are ‘ambitious, and will require continued strong commitment to the economic program to ensure achievement of key benchmarks, noted he.
The move means, that the International Monetary Fund and the World Bank have cleared Liberias entry into the Heavily Indebted Poor Countries (HIPC) initiative, a vital step toward canceling the countrys 4,7 billion dollar debts and helping it rebuild from civil war.
Kilde: www.worldbank.org
