The World Bank suspends Liberia’s access to loans. – LNP International News

In a significant move, the World Bank has suspended Liberia from accessing “undrawn loans” due to defaults on payments by President George Weah’s administration. The decision raises concerns about the country’s economic stability, as the outgoing administration is 60 days behind on its debt payments.

Ousmane Diagana, World Bank vice president for the West and Central Africa region, explained that the suspension comes after the outgoing administration failed to meet its payment obligations, despite prior notifications to Finance Minister Samuel Tweah. October 31st.

“As of November 15, the borrower’s right to make any additional withdrawals of amounts not withdrawn under the drawdown loans is suspended,” Diagana said in a statement. The suspension will affect funding from the International Development Association, advances from the Project Preparation Fund and grants from the Institutional Development Fund.

In a letter to Liberia’s Minister of Finance, Diagana expressed the hope that outstanding payments will be cleared soon to allow withdrawals to resume and support crucial Bank-supported operations in Liberia.

The suspension, according to the letter, could affect other grants and loans financed by trust funds administered by the Bank, earmarked for projects in Liberia. The World Bank office in Liberia said the suspension would affect the incoming government of President-elect Joseph N. Boakai.

Diagana stressed that the suspension will be lifted only when all outstanding payments are settled. In the meantime, the Bank will continue to withdraw funds from the relevant loan account to meet special commitments outstanding and payable under pre-suspension contracts. The suspension, a common Bank practice, will persist until the member country is current with all payments due under the suspended loans.