The Liberian government through the Ministry of Finance will soon begin a negotiation that will lead to the International Monitor Fund(IMF) to give the country US$350M.
Said amount when approved, will be the first time in the administration of this government for the IMF to release such amount. The board of the IMF has approved some funds in the past, according to the IMF.
This is based on Liberia’s quota to IMF of 0.05 percent. It will be used to boost up Liberia’s reserve, one of the reasons the allocation was made.
Additionally, to support economic growth through major infrastructure investment in the post COVID Era and to support the Fight against COVID through vaccinations.
Said will also help 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 the uses of these resources soon. The amount is expected to be released by the end of August, 2021.
When approved, the funds will be given to the Central Bank Liberia-CBL and the non reserve portion on lend to the fiscal authority.
Recently, the Minister of Finance, Samuel Tweah told international media that the Liberia government has an excellent relationship with the IMF. That they were in discussions with the bank to see ways of helping with some resources in the fight against the panemic.
“We have a very good relationship with the IMF. As a matter of fact, we have a team that has been working with us here,” he said.
He said, they were working with the IMF to help in some areas of the economy. But when such fund is given, it will help the country boots its reserve.
It can be recalled that during the regime of former president Ellen Jonson Sirleaf, in 2014, at the heat of the Ebola epidemic, the CBL had spent over $40 million. This was disclosed by former deputy central bank governor Boima Kamara.
At the time he said, “Just from June to September this year(20214), we have spent between $40 million to $50 million to intervene in the economy. That level of intervention has to be done to avoid a liquidity crisis,” Kamara said in an interview on the sidelines of the all meetings of the International Monetary Fund and World Bank in Washington.