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World Bank suspends access to “unwithdrawn loans”

World Bank suspends access

The World Bank has suspended Liberia from accessing “unwithdrawn loans” due to the failure of President George Weah’s administration to service previously disbursed loans.

 The Bank’s decision, which raises concerns about the country’s economic stability, comes as the outgoing Weah administration is 60 days behind on its debt repayment.

Ousmane Diagana, the World Bank Vice-President of the Western and Central Africa region, noted in a statement that the suspension decision comes after the outgoing Weah administration failed to meet its debt payment obligations, despite Finance Minister Samuel Tweah being notified ahead of time on October 31.

According to the letter, the suspension would affect financing from the International Development Association, Project Preparation Facility Advances, and Institutional Development Fund grants.

The suspension, the letter added, is also expected to affect other grants and loans financed under trust funds administered by the Bank, which might be made to or guaranteed by Liberia or other recipients for projects carried out within the country.

Diagana said the World Bank regretted having to take such action but emphasized that the suspension would only be lifted once all outstanding payments are settled, expressing “sincere hopes for a swift resolution to allow the resumption of withdrawals, supporting the crucial operations the Bank has been backing in Liberia.”

When contacted for clarity, the World Bank Liberia office told the Daily Observer that the suspension, would affect the incoming government of President-elect Joseph N. Boakai.

World Bank suspends access to “unwithdrawn loans”

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