President Ellen Johnson in this year’s State of the Nation Address Monday frowned at domestic creditors for not waiving the debt owed them by the Government of Liberia.
“Honorable Legislatures, it is considered ironic by our partners who have granted us significant debt relief that we are unable to convince our own public institutions and private
sector entities who have made significant profits over many years to act similarly by relieving us of the debt incurred many years ago under other administrations,” the President said.
She said her government had learned from the past and was now careful to exercise caution in incurring debt to mitigate debt-related shocks on the economy.
“Working with our key development partners, a Medium Term Debt Strategy (MTDS) was adopted as an essential tool in accounting for and analyzing the costs and risks associated with borrowing and ensuring a balance with funding needs. In this manner, debt sustainability is assured.
“The total debt stock increased from US$628.45 million to US$759.46 million, of which US$290 Million is owed to the Central Bank of Liberia. This represents 22 percent of GDP,” she said.