IMF Pledges $842 Million Deal for Debt Relief
|
|
Member states of the International Monetary Fund (IMF) have made pledges totaling more than US$842m, to provide debt relief for Liberia. IMF Managing Director Dominique Strauss-Kahn Monday announced in Washington, DC, that the International Monetary Fund secured these financing pledges from member countries as a deal to allow the Fund provide debt relief to Liberia. A release from the Liberia embassy in Washington, DC, quoted IMF Managing Director as saying that when these pledges are formalized, a process will be followed to clear the arrears for Liberia to qualify for new Fund financing that will enable the delivery of Heavily Indebted Poor Countries (HIPC) Initiative and other debt relief to the country. This is one of the first concrete achievements for the new IMF director, who took over his post on November 1. The IMF boss noted that by clearing Liberia’s books of arrears accrued over the war years, the deal will allow the struggling country to gain access to loans and other assistance from the IMF, the World Bank and the African Development Bank. The Embassy further quotes Mr. Strauss-Kahn as highly praising the financing breakthrough, noting, “Today’s milestone is a critical step in moving Liberia onto a path toward comprehensive debt relief. We will continue to support the post-conflict recovery, building on Liberia’s many achievements over the past two years”. According to him, “despite difficult conditions, Liberia has established an encouraging track record of macroeconomic management and reforms.” The Managing Director offered his thanks to the IMF member countries for their generous support, adding, “I would like to record my appreciation for the leadership of President Johnson-Sirleaf and her economic team. I also wish to acknowledge the efforts of many leaders around the world in this cooperative effort, including the low income countries, as well as for the personal support of Bob Zoellick at the World Bank.” |