By Bill W. Cooper
President George M. Weah has submitted for rectification three financial instruments maintaining macroeconomic policy framework in the country, among other things, to the House of Representatives.
Key amongst the bills are the Southeastern Corridor Road Assets Management Project, a financing agreement for the Second Inclusive Growth Development Policy Operation and a financing agreement for the Rural Economic Transformation Project; all between the government and the International Development Association (IDA).
According to the President’s communications which was read in plenary on Tuesday, June 22, the objective of the road project is to support Liberia’s efforts to enhance road connectivity along selected sections of the Ganta-to-Zwedru road corridor and improve institutional capacity to manage the road sector.
President Weah in his communication pointed out that under the financing agreement, the Association agrees to extend to Liberia a credit, which is deemed as Concessional Financing in the amount of US$41,000,000, indicating that the maximum commitment charge rate is one-half of one percent per annum on the unwithdrawn financing balance.
The communication further disclosed that the payment dates are February 15 and August 15 in each year commencing February 15, 2025 to and including August 15, 2026 at a rate of 1.5625 percent.
As for the Second Inclusive Growth Development Policy operation financing agreement, the Liberian leader emphasized that the purpose of the finance is to support the budget, noting that it is in recognition of the key policy and institutional reforms that the Government of Liberia continues to implement.
According to him, under the agreement, the Association agrees to extend to Liberia a grant and a credit, which are deemed as concessional financing in an amount equivalent to US$14,000,000 (Grant) and an amount of US$20,000,000 as (Credit).
He added, “The maximum commitment charge rate is one-half of one percent (1/2 of 1%) per annum of the unwithdrawn financing balance. The payment dates are February 15 and august 15 in each year commencing august 15, 2027 to and including February 15, 2059 at a rate of 1.5625 percent.”
Meanwhile, President Weah further noted that the Association also agrees to extend to Liberia a credit, which is deemed as non-concessional financing in the tune of US$55,000,000 towards the financing agreement of the Rural Economic Transformation Project aimed at improving productivity and market access for smallholder farmers and agro-enterprises for selected value chains in project participation countries.
The Liberian Chief Executive alluded, “The commitment charge rate is one-quarter of one percent per annum on the unwithdrawn credit balance while the principal payment dates are February 15 and August 15 in each year beginning August 15, 2031 through August 15, 2049 at 2.63 percent and on February 15, 2050 at 2.69 percent.”
However, two of the financial instruments were sent to separate committees include the Public Accounts and Expenditure, Ways, Means, Finance and Development Planning, Judiciary and Agriculture, Forestry and Fisheries with the mandate to report in one week.
While the other was referred to the Committee on Ways, Means, Finance and Development Planning and Judiciary with the mandate to report within two weeks.