Monrovia, Liberia – Augustine Ngafuan,Liberia Minister of Finance and Development Planning, has expressed alarm over Liberia’s worsening debt situation, stating that the nation’s entire debt stock has reached $2.5 billion, with domestic debt alone top $1 billion.
In light of Liberia’s hard economic realities and the government’s inadequate allocation of development capital resources, Minister Ngafuan asserted that it is imperative to address the country’s mounting domestic debts in order to regain credibility and guarantee ongoing access to funding for efficient public governance.
He noted that Liberia is suffering with a financial credibility problem, a scenario he blamed on the Unity Party-led government inheriting large debts owing to commercial banks, small companies, and contractors.
FM Ngafuan also asserted that the preceding administration of former President George Weah repeatedly borrowed money but failed to meet payment obligations, leading to widespread mistrust in government financial operations with its partners at home and abroad.
Many businesses, including media outlets and government service providers, have been having trouble being paid for years. Delayed government repayments are still causing financial issues for commercial banks.
It is disappointing that the government, which is the biggest domestic spender, has not been forthcoming in paying its obligations to these corporations and enterprises, even though it holds them accountable for failing to pay taxes.
Ngafuan, who is taking on the role for the second time after having done so under former President Ellen Johnson Sirleaf, reassured the populace that he had the knowledge and experience necessary to tackle Liberia’s ongoing financial difficulties. His assertions support the appointment of him by President Joseph Nyumah Boakai, who under Sirleaf’s government also briefly held the position of Finance Minister.
Despite Liberia’s abundance of natural resources, the country has historically been among the least developed and poorest in the world due to massive and complicated infrastructure, human capital, and institutional development challenges. These challenges accompany the Unity Party’s return to power following six years of Coalition for Democratic Change (CDC) leadership under Weah.
Minister Ngafuan highlighted the debt challenge when he appeared on a local radio (OK FM 99.5) yesterday morning in Monrovia.
