Liberia Slashes its Debt with Historic Buyback Deal!


Apr 16th, 2009 5:27 PM EST
By Virginia Simmons

Liberia bought back $1.2 billion in debt today at a 97% discount, “the steepest ever negotiated on developing country commercial debt.”

From the World Bank:

“The deal was concluded with the payment of $38 million to retire 25 outstanding commercial claims. The World Bank contributed half of this money through the International Development Association (IDA) Debt Reduction Facility, and Germany, Norway, the United Kingdom, and the United States contributed the other half.

“The successful resolution of this inherited debt, which had ballooned through interest and penalty charges during a period when my country was wracked by civil war, is an important step on our road to recovery,” said Liberian President Ellen Johnson Sirleaf. “This puts us on a firmer footing to attract investment and accelerate economic growth.”

Expect more from ONE soon on this amazing update.

-Virginia Simmons

TAGS: Debt Cancellation, IMF, Liberia, Policy News, President Ellen Johnson-Sirleaf, World Bank

 

5 Comments

  1. Debbie Ksays: Apr 16th, 2009 8:40 PM EST

    April 16, 2009 at 8:40 pm

    GREAT NEWS for Liberia! Thanks so much for sharing this, Virginia.

    We must keep faith in ourselves & in the purity of our international movement to make extreme poverty history.

    Millions of the world’s poorest people who have NO voice in the international arena are living on the edge – we can’t let them down now!

    ALWAYS FOREVER, ONE – debbie
    http://www.mpwn-uganda.org
  2. Nick Stevenssays: Apr 16th, 2009 11:10 PM EST

    April 16, 2009 at 11:10 pm

    Great news! I remember over a year ago when ONE had a massive email campaign to the IMF to help relieve Liberia’s debt. Great to see that there is additional progress!
  3. Rochelle Gibbssays: Apr 17th, 2009 5:58 PM EST

    April 17, 2009 at 5:58 pm

    Excellent news indeed for Liberia, the “Iron Lady”, and the citizens, who are the ones who will ultimately reap the rewards of both yesterday’s and the 2007 IMF negotiations!
  4. African Voices Cinema Seriessays: Apr 27th, 2009 11:23 AM EST

    April 27, 2009 at 11:23 am

    BRAVO!
  5. Dr M.V.R. Prasadsays: May 2nd, 2009 10:30 AM EST

    May 2, 2009 at 10:30 am

    I am pleased at the encouraging news that Liberia would reap the rewards of both yesterday’s and the 2007 IMF negotiations.
    Thanks for the news.

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