— After the country settled all of its overdue payments
The World Bank has lifted the suspension imposed on Liberia after the country settled all outstanding debt payments. The lifting of the ban marks a significant development for Liberia's economic growth and development.
The suspension, imposed a little over a week ago, had prevented the Liberian government from accessing un-withdrawn loans and specific Trust Fund grants. But the lifting of the suspension now means that Liberia can now access these loans, providing much-needed financial resources to address pressing issues such as poverty, infrastructure, and healthcare.
For Liberia, this move comes as a much-needed boost to its struggling economy. The country has been grappling with various challenges, including high levels of poverty, limited infrastructure, and a weak healthcare system. Access to these unwithdrawn loans will provide Liberia with much-needed financial resources to address these pressing issues.
“In reference to the notice issued by the International Development Association (“World Bank”) to the Republic of Liberia (“Member Country”) dated November 15, 2023, suspending withdrawals under the Suspended Loans referred to in said notice, we are pleased to inform you that the World Bank has received all the overdue payments referred to in the suspension notice and all other payments owed by the Member Country that have fallen due since the Suspension Date referred to in said notice. The Member Country is therefore now current on all payments owed by them to the Bank under the Suspended Loans. Consequently, the suspension of withdrawals under the Suspended Loans has been lifted as of November 24, 2023,” the World Bank said in its notice lifting Liberia's suspension.
It may be recalled that on November 15, the International
Development Association “World Bank” issued a notice suspending the George Weah administration denying it access to the withdrawal of loans due to delay in servicing its debt obligation. The decision to suspend access was conveyed in a letter on
November 15 to Liberia’s Finance Minister Samuel Tweah, from the Vice-President of the Western and Central Africa region at the World Bank, Ousmane Diagana.
However, the Weah administration succeeded in settling its obligation, something that would have served as a roadblock for the incoming Boakai administration in gaining access to unwithdrawn loans.
The World Bank suspended Liberia’s access to “unwithdrawn loans” for 60 days, but the Weah administration was able to react promptly to avoid further damage to its image.
The World Bank’s decision to lift the suspension signifies a boost to Liberia's struggling economy.
It should be noted that the George Weah administration was successful in settling its debt obligation, ensuring that access to un-withdrawn loans would not be hindered for the incoming Boakai administration.
The External Debt Service Suspension allows for the suspension of servicing affected external public debts, creating an interim period for restructuring obligations in line with an IMF-supported economic adjustment program.