President Dr. George Manneh Weah has disclosed that Liberia’s total stock of public debt at the end of 2020 amounts to $1.580 Billion US dollars.
The Liberian leader made the disclosure Monday, January 25, 2021, when he delivered his fourth annual address to members of the 54th Legislature on Capitol Building.
The president said of the mentioned amount, domestic debt amounts to $643.39 Million US dollars, while external debt amounts to $940.93 Million US dollars.
He explained that at the end of December 2019, the total stock of public debt stood at $1.28 Billion US dollars, of which domestic debt amounted to $419.8 Million US dollars, while external debt amounted to $862.87 Million US dollars.
“This increase in domestic debt stock is mainly because of the restructuring and consolidation of the Government’s debt to the Central Bank of Liberia,” he said.
Continuing, he said the domestic debt includes $170.63 Million US dollars that was contracted by the previous administration but never included in official debt statistics, saying “this irregularity has now been corrected.”
The Liberian leader disclosed that repayment on “our domestic debt stock has been structured under the current IMF-supported economic program.”
He said the government is now working to validate the stock of other domestic debt.
“While this work is ongoing, payments on domestic debt have commenced as a means of stimulating the economy. The Government remains committed to servicing domestic debt as a clear strategy toward stimulating growth,” he stated.
President Weah admitted that 2020 was challenging for the Liberian economy.
“Real GDP growth projection was further revised downward to negative three (-3.0%) percent for 2020, from the earlier projection of negative two point five (-2.5%) percent, reflecting a decline in economic activity, largely due to prolonged lockdowns at home, restrictions on international travels, disruptions in supply chains and international trade, and the second wave of the pandemic now seen in several countries, including Liberia’s major trading partners,’ he said.
Although the impact of the pandemic on the mining and manufacturing sectors was limited, he said the service sector, especially the hospitality sub-sector, was severely hit due to the lack of international travelers.
However, he said this year, the economy is projected to grow by three point two (3.2%) percent, on account of expected growth in all major sectors of the economy, as well as favorable global developments.
But noted that recovery of the economy will depend on the persistence, or otherwise, of COVID-19.
He was quick to add that however, recent news about production of vaccines for the prevention and treatment of the pandemic is a positive development which will fast track global post-COVID recovery.
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