There appears to be enormous gleams of hope for Liberia’s economic recovery despite the gloom of despair hovering over the nation sparked by a global pandemic and domestic cynicisms. There is massive relief on the way that could change the stagnant situation into an upward mobility for transformation. It’s all not coming on silver platter nor is it thrown out from the clear space. It is a result of an unusual mustering of courage as ever before in Liberia’s governance history, coupled with technical engagements between national and international forces and developing goodwill abroad. At the end of it all the whopping $350 million hangs nearly and Liberia is reaching out to pick it, provided a few more things are said and done by the Government. The Analyst reports.
Liberia is half a mile away from accessing full partnership benefits from the world’s leading financial institutions, principally the International Monetary Fund (IMF), beginning with possible bagging of some $350 million.
According to a source at the Ministry of Finance and Development Planning, The IMF has not approved money for Liberia yet, but the Board has approved money for all countries and the amount 350M for Liberia will be approved later.
The source, who asked not to be named in print, said the IMF intervention will serve three key purposes, all geared towards burgeoning Liberia’s economic position, ensuring fiscal stability.
“The expected amount is to boost Liberia’s reserve,” the source said, adding, “this is one of the main reasons for which the allocation has been made.”
“To support economic growth through major infrastructure investment in the post COVID Era and to support Fight against COVID through vaccinations,” he said additionally.
According to the MFDP source, the US$350 million will also be used to liquidate both domestic debt as a form of economic stimulus and to pay down some debt to the IMF.
“The Government of Liberia led by the MFDP will negotiate with the IMF on the uses of these resources,” the source said, indicating that Liberia will have to meet its 0.05 quota.
These monies would be given to the CBL and the no reserve portion lent to the fiscal authority, he noted further.The $350m which Liberia is to receive represents a ratio of the $650b approved by the IMF to assist vulnerable countries caught in the web of challenges posed by the COVID-19 to pay for vaccines, finance health care, pay domestic debt and stabilize their economies
Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund, made the announcement last week Friday, July 9, 2021 as finance ministers and central bank governors of the Group of 20 nations were gathering in Venice to discuss international tax policy, climate change and the global economic response to the pandemic.
“The IMF Executive Board yesterday concurred in my proposal for a new general SDR allocation equivalent to US$650 billion – the largest allocation in the IMF’s history – to address the long-term global needs for reserves during the worst crisis since the Great Depression”, she said.
Madam Georgieva said she will now present the new SDR allocation proposal to the IMF’s Board of Governors for their consideration and approval. If approved, then it expected that the SDR allocation will be completed by the end of August.
“This is a shot in the arm for the world. The SDR allocation will boost the liquidity and reserves of all our member countries, build confidence, and foster the resilience and stability of the global economy. In 2009, an SDR allocation contributed significantly to recovery from the global financial crisis and I am confident that this new allocation will have a similar benefit now.” the IMF boss added
She noted that the SDR allocation will help every IMF member country – particularly vulnerable countries – and strengthen their response to the COVID19 crisis.
“We will maintain active engagement with our membership in the months ahead to identify viable options for voluntary channeling of SDRs from wealthier members to support our poorer and more vulnerable countries to help their pandemic recovery and achieve resilient and sustainable growth, which will also help boost global economic recovery”, Madam Georgieva concluded.