Assurances Measures are being taken to rectify the problem.
Monrovia, Liberia – Liberia’s growing debt is a major obstacle to the nation’s economic development, according to Finance Minister Augustine Kpehe Ngafuan. He however, pointed out that the Ministry of Finance is making a concerted effort to resolve the matter in spite of the obstacles.
The present debt of Liberia is a moderate $2.85 billion, according to Ngafuan. It would cost the government $300 million a year to start handling the matter well. The ministry is taking a number of actions to advance debt reduction, he continued.
On the fringes of the current World Bank and IMF annual conference in Washington, DC, Ngafuan told the Voice of America that the IMF had successfully secured US$210 million for Liberia’s economy through its Extended Credit Facility program, a crucial financial undertaking. He stated that this sum will be utilized to increase the Central Bank’s reserve.
Since resuming office little over a month ago, Minister Ngafuan, who was reappointed by current President Joseph Nyuma Boakai after Boima Kamara resigned, said that obtaining this financing was one of his top priorities. Ngafuan was previously employed by former President Ellen Johnson Sirleaf.
As Ngafuan explained, “Liberia has been approved and received US$210 million from the extended credit facility program of the IMF, which will be disbursed within a 40-month timeframe.” The IMF team is scheduled to arrive in Liberia on November 6 to start their evaluation.
The Minister emphasized that the funds will significantly bolster the reserves at the Central Bank of Liberia, which is a crucial economic indicator. He highlighted the necessity of maintaining reserves that can finance a minimum of three months of imports. Currently, Liberia’s reserve position allows for financing just over two months of imports.
Minister Ngafuan also stated plans to restore cash that the government had previously taken out of the central bank’s reserves, with a budgetary allotment of about US$15 million to be included in the following year.
Along with the IMF assistance, Minister Ngafuan provided an update on the creation of Liberia’s new national development program and the progress made on the country’s budget for the next fiscal year. He intends to use President Boakai to introduce this agenda before the month is over.
Ngafuan emphasized the significance of updating partners on Liberia’s advancements and difficulties while reflecting on his trip to Washington, DC.
Although there are many obstacles to overcome, we are doing so with tenacity and excellent teamwork from our partners. The sessions have been fruitful overall, with the goal of bolstering confidence and solidifying the nation’s advancement, the minister said.
Minister Ngafuan maintained that he is dedicated to bolstering Liberia’s economic base and guaranteeing the country’s sustainable growth with this funding increase and continuing efforts.
