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Liberia’s skepticism toward foreign investment and the World Bank’s suspension of all disbursements to Liberia

According to documents in possession of this paper, the World Bank notified the Republic of Liberia on October 31, 2023, about the suspension of disbursements due to the failure of the government to pay all loans it received from the financial institution.

In a communication addressed to Finance Minister Samuel Tweah, the World Bank’s Vice President for Western and Centra Africa, Ousmane DIAGANA, said the World Bank is no longer going to make any disbursement until all arrears, meaning money taken for various projects in Liberia by the government are accounted for.

“With utmost regret, we inform you that, pursuant to the General Conditions or Standard Conditions (as the case may be) and as defined in the agreement proceeding for the respective Disbursing Loan) applicable to each of the Disbursing Loans, the Bank suspends as of 12:0l a m , Washington, D.C., time November 15, 2023 (a) the right of the respective borrower(s) thereof to make any further withdrawal of unwithdrawn amounts under the Disbursing Loans: and (b) the right o1 the respective recipient(s) thereof to make any further withdrawal of unwithdrawn amounts under the following Trust Fund grants and loans( Disbursing TF Grants/Loans ‘) (the Disbursing Loans and the Disbursing TF Grants/Loans, collectively, the “Suspended Loans”).” The letter says.

Some of the projects for which money was given by the World Bank and remained unimplemented are Liberia Road Asset Management Project, Road Asset Management AF, Accelerated Electricity Exp, SCF, Liberia Renewable Energy Access Project among many others.

“Until the suspension is lifted, no disbursement will be made to the designated account(s) of the Suspended Loans Nevertheless, applications documenting eligible expenditures from these account(s) should continue to be delivered to the Bank. Except as the Bank may, in its sole discretion determine, applications providing evidence that designated account balances have been fully drawn down to meet the expenditures for Exempted Items, and any other eligible expenditures, must be delivered to the Bank before the Bank will consider an application for direct payment or reimbursement of payments for Exempted Items However, the Bank will continue to withdraw monthly loan account of the relevant Suspended Loan and pay amounts requested by commercial banks and payable under outstanding special commitments issued by the Bank on or before the Suspension Date. In addition, all other restrictions applicable to payments overdue by forty-five (45) days will continue to apply until the suspension is lifted. As its standard Bank practice, the suspension will continue until the Member Country and all other borrowers are current on all payments owed to the Bank under the Suspended Loans. Being current on all payments includes not only payments within› (30) dams or more overdue, but also all other payments due as of the date the Bank receives payment, regardless the number of days.” The letter says.

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