By 
The World Bank has reportedly suspended Liberia’s access to crucial funding after the country defaulted on its payment obligations for 60 days.
This suspension, which took effect on August 15, 2024, could significantly derail development projects as the government contended with austerity measures and a recast national budget, according to a report by the Liberian Investigator.
The suspension prevents Liberia from withdrawing funds under active credits, Project Preparation Facility advances, Institutional Development Fund grants and other loans and grants managed by the World Bank.
The freeze on funding exacerbates Liberia’s financial difficulties and could halt vital infrastructure, agriculture and energy projects already weakened by budget cuts.
Michael Sahr, the World Bank’s External Affairs Officer, reportedly confirmed the decision to the Liberian Investigator, expressing optimism that Liberia would clear its overdue payments to resume project financing.
“The World Bank looks forward to the Republic of Liberia’s payment of all overdue amounts and remains committed to supporting Liberia to ensure the effective implementation of all the projects in its portfolio, for the benefit of the Liberian people,” Sahr stated.
This development comes as the Unity Party-led government struggles to manage a budget reallocation reflecting harsh economic realities.
The revised budget had been reduced from US$738.9 million to US$721.5 million.
Despite these challenges, Liberia’s economy grew by 4.7 percent in 2023, primarily driven by increased gold production, according to the World Bank.
However, growth in the primary sector remained sluggish at just 1.4 percent, due to declining output in key agricultural products like rubber and crude palm oil.
The secondary sector expanded by 13.9 percent, led by mining, while the services sector saw modest growth from 2.8 percent in 2022 to 3.8 percent in 2023.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments