Rédaction Africa Links 24 with New Dawn
Published on 2024-04-03 11:15:28
Liberia’s current domestic and international debts as of December 2023 amount to a total of US$2,337.26 billion. Of this, domestic debt accounts for US$1,022.00 billion (43.73 percent) while external debt stands at US$1,315.26 billion (56.27 percent).
Mr. Anthony Myers, Liberia’s Deputy Finance and Development Planning Minister for Fiscal Policy, has affirmed a strong commitment to the Boakai administration in servicing the government’s domestic and external debts. The government’s public debt service portfolio, as detailed in the recently submitted draft national budget to the national Legislature, outlines a projected total debt service, subscription, and other payables for FY2024 at US$217.28 million. This reflects a significant increase of 117.69 percent compared to the FY2023 forecast of US$99.81 million, with an allocation of US$129.00 million earmarked for debt servicing.
The increase in the Ministry of Finance and Development Planning’s budgetary allocation is primarily attributed to the government’s dedication to financing accumulated debts incurred by other government institutions. Minister Myers emphasized the Ministry’s responsibility to finance activities and liabilities of other government entities, leading to the allocation of US$129 million as a significant factor in the increased allocation for FY2024.
As responsible debt management falls under the purview of the Ministry of Finance and Development, Minister Myers emphasized the government’s commitment to being responsible to both domestic and international partners by increasing debt servicing. Servicing domestic debt obligations is vital in strengthening the capital portfolio of commercial banks, ensuring their viability and preventing collapse. Similarly, servicing external debt obligations creates space for necessary support to finance the government’s development plan over the next five years.
Speaking at the MICAT regular Press Briefing, Minister Myers highlighted a positive economic outlook for Liberia, projecting an expansion to 5.3 percent in 2024 and an average of 6.4 percent in the medium term (2025-2027). This growth trajectory follows a 4.6 percent Real GDP expansion in 2023, driven by growth in the mining, manufacturing, and services sectors.
The Deputy Minister of Fiscal Policy at the Finance Ministry delved into various macroeconomic assumptions that informed the preparation of the Draft FY2024 National Budget. These assumptions included a favorable GDP growth rate, anticipated rise in imports, expected increase in government revenue from various sectors, moderation of inflation, and stability of the exchange rate in the medium term.
The 2024 Draft National Budget, recently submitted to the national Legislature, outlines a total resource envelope of US$692,409,245.53. Domestic currency accounts for 28 percent (LR41.1 billion Liberian dollars) while actual United States Dollars make up 72 percent (US$500.4 million). The projected annual average exchange rate is US$1:213.82 LRD, with domestic resource mobilization projected to generate US$649.9 million (93.9%) and external resources contributing US$42.4 million (6.1%).
In conclusion, Minister Myers reiterated the government’s commitment to responsible debt management, economic growth, and sustainable development for Liberia. By honoring debt obligations and implementing sound financial practices, Liberia aims to strengthen its economy and foster partnerships for long-term prosperity.
Read the original article on The Newdawn Liberia
