Liberia gets some relief on its billion dollar debt

The United States and other creditors reached an accord last week with the Government of Liberia to forgive approximately $254 million in debt immediately. Liberia still owes some $789 million, creditors said, of which 97 percent consists of arrears and l

Payments on this balance are suspended until 2011. ”Previous Liberian administrations borrowed heavily, and at times recklessly, in the late 1970s and early 1980s,” noted the Paris Club of international creditors who restructured the obligation. By the mid-1980s, payments on the balance had all but ended yet interest and fees continued to grow.

Finance Minister Antoinette M. Sayeh said, “The historic agreement à demonstrates the commitment of our bilateral partners à to help Liberia make visible progress on reducing poverty amidst significant challenges, including from rising food and fuel prices.” Meanwhile, a former lawmaker has called on the Firestone Rubber Plantation to dedicate some land to the growing of rice.

Since the rubber farmers have taken all of the best and fertile lands in the country, said Joseph Cornomia, they should consider growing rice here instead of importing it for the workers. Firestone and the the union of agricultural workers are currently in contract talks. (AP)

______ Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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