Liberia’s domestic debt at record high

July 4, 2022

120

Since December 2021, the domestic debt portfolio of Liberia has climbed to an unprecedented level of US$708 million.

Since December 2021, the domestic debt portfolio of Liberia has climbed to an unprecedented level of US$708 million. In response to the mounting debt, the government has decided not to borrow any funds from the Central Bank of Liberia (CBL) to pay off the current debt.

Augustus J. Flomo, Deputy Finance Minister for Economic Management, recently disclosed this in response to the question posed by the Senator Abraham Darius Dillon of Montserrado County on the nation’s domestic debts recently at the Senate Committee. The deputy finance minister informed that President George Weah put a block on borrowing money from the Central Bank in 2019.

He further revealed that the government has set aside US$72 million for domestic debt in the 2020-2021 budget and another US$69 million in the 2022 budget to help the country clear its debts. With the annual repayment, it will take ten years for the government to pay the total debt of US$708 million.

Weah had earlier announced that his administration had made significant progress in restructuring the country’s domestic debt, which stands at US$660 million. According to him, the total stock of external debt was approximately US$1.03 billion.

Under the guidance of IMF, Liberia started restructuring its loans two years ago. Under the IMF-supported Programme, all debts owed to the Central Bank of Liberia (CBL), including the debt owed to the former National Bank of Liberia, were bundled into a Restructured and Consolidated Loan two years ago.