The Government of Liberia, through the Ministry of Finance and Development Planning, has moved to settle its domestic debts as a means of restoring credibility and confidence with local banks and contractors.
Finance Minister Augustine K. Ngafuan said the country’s current debt stock is approximately US$2.5 billion, with domestic debt standing at over a billion dollars.
Speaking Thursday, March 6, 2025, on a local talk show in Monrovia, Minister Ngafuan disclosed that before his ascendency as Minister of Finance, one of the problems which was being faced by the government was “distrust”, stating that in the past, the government used to take loan from commercial banks without settling the debts, awarding contracts to local contractors without paying them.
According to him, the government has moved to restore mutual relations and trust with these commercial banks and local contractors by beginning to pay their interest.
He revealed that the past administration borrowed from commercial banks, contractors, and small businesses without meeting their obligation to pay them, which has led to many vendors and service providers distancing themselves from government contracts due to repeated non-payment, derailing government operations.
He further noted that the government is also planning to settle debts with the Central Bank of Liberia (CBL), disclosing that in December 2023, the previous government was loaned US$83 million by the CBL aimed at paying civil servant salaries, something he said was unbudgeted.
Ngafuan said this government remains robust and poised to settle debts, saying the current administration is exerting efforts to settle the country’s debt stock, something he considered as being stiff but must be done by the government.
Source: LINA
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