By Grace Q. Bryant
The Deputy Minister for Economic Management at the Ministry of Finance, Dehpue Zuo, has disclosed that the previous administration left a debt of US$2.6 billion.
Speaking at the Ministry of Information, Culture, and Tourism, Deputy Minister Zuo revealed that former President George Weah’s administration accumulated this debt, while the 12-year tenure of former President Ellen Johnson Sirleaf resulted in a total debt of US$1.5 billion.
Deputy Minister Zuo highlighted the seriousness of the current debt situation in Liberia, emphasizing that the US$2.6 billion debt is a significant burden.
He urged Liberians to be cautious and work to build the country’s credibility by reassuring international partners that all debts will be paid on time.
He also appealed to creditors for additional time to repay debts, noting that there is a lack of awareness among the general population about these financial obligations, with misinformation spreading among citizens.
“The CDC-led government accumulated this US$1.5 billion debt, and there is a lack of transparency regarding how the funds were used or invested,” He noted
Deputy Minister Zuo stressed the importance of ensuring that all citizens, particularly the younger generation, are informed about the country’s financial state.
Deputy Minister Zuo disclosed that Liberia is currently spending over US$44 million annually on debt servicing.
He explained that this expenditure means that Liberians are sacrificing potential investments in essential services, such as building hospitals, schools, providing food for children, and supporting prisoners.
He emphasized that citizens should be asking how their money is being utilized, given the debt inherited from previous administrations.
He also noted that, aside from concerns about a potential economic downturn that has not yet materialized, the government is taking steps to manage the economy responsibly.
He mentioned that just last year, the government allocated US$83 million to reserves to ensure the country could continue to function and pay civil servants.
Deputy Minister Zuo compared the country’s financial reserves to a human body’s blood supply, stating that when reserves are low, the country cannot function effectively.
He underscored the importance of protecting these reserves, which is why the current administration has worked diligently to implement the Extended Credit Facility (ECF) program to safeguard the nation’s financial stability.
He emphasized that Liberia has a relatively stable macroeconomic environment, which allows the government to manage the economy effectively despite the domestic and external debts inherited from previous administrations.
He concluded by stating that managing the country’s economy under such challenging circumstances is part of the administration’s “rescue mission” to stabilize and improve Liberia’s economic situation.
