November 13, 2007
HP-678

Treasury Welcomes IMF Debt Relief for Liberia, U.S. Government to Provide Additional Funding to Help Liberia Close the Deal at the African Development Bank

Washington, DC--Treasury Secretary Henry M. Paulson, Jr. today welcomed the announcement from the International Monetary Fund (IMF) that over 80 IMF member countries have agreed to provide approximately $840 million in financing for debt relief for Liberia. 

"I am proud of the U.S. leadership role, alongside our G-8 partners and management at the international financial institutions, in mobilizing financing for full debt relief for Liberia at the IMF, World Bank and African Development Bank," said Paulson. "This debt relief will help strengthen the economic turn-around begun by President Johnson Sirleaf."

Additionally Treasury announces today that it will provide funding for Liberia's required approximately $2.5 million contribution to clearance of its arrears at the African Development Bank (AfDB).  This will bring the total U.S. contribution to clearing Liberia's arrears at the AfDB to about $17.5 million. Without this extra contribution from the United States, the Liberian government would have had to put up $2.5 million at the AfDB.

"We would rather see the Liberians use their money for schools, health clinics and other urgent rebuilding needs," said Paulson. "It is time to close the deal and move forward with debt relief plans at all three of the international financial institutions."

Paulson departs today for a six-day trip to Africa to discuss the positive economic changes taking place on the continent with government and business leaders.

"This debt relief will allow Liberia to move forward. By sustaining natural resources, building physical infrastructure, developing financial markets, improving business climates and promoting free trade, African leaders will bring jobs and greater prosperity to all Africans. The traditional African values of hard-work and persistence, combined with leadership dedicated to good governance, will make this possible," said Paulson.

Background

The U.S. Treasury had earlier said that it would:

• Provide over $185 million (SDR 118 million) as part of Liberian debt relief financing at the IMF; 
• Provide $15 million to the African Development Bank for Liberian debt relief financing;
• Forgive our $391 million in claims on Liberia under the Heavily Indebted Poor Country (HIPC) framework.  President Bush requested funding in the FY2008 budget to cover the start of the process.

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