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Liberia's Debt Burden At US$3.4 Billion

The Analyst (Monrovia)
NEWS
December 7, 2004
Posted to the web December 7, 2004

By George J. Borteh

- Confidence Crisis Hits Banking Sector
Deputy Governor of the Central Bank of Liberia, Sandy Cooper, says Liberia is
staggering under the debt burden of US$3 billion and that trade deficit has
continued to widen.
Governor Cooper addressing a dinner of the Liberia Business Association over
the weekend at the Monrovia City Hall said the trade deficit of Liberia is
recorded at US$11.7 million for 2002, US$60.8 million for 2003 and further
increased to US$88.7 at the end of the second quarter of 2004.
The Liberia banker observed that at the end of 2004, the debt stock was
reported as US$2.7 billion and then rose to US$2.9 billion for the second
quarter of this year, saying that at present, it stands at US$3.4 billion.
Mr. Cooper, serving as the keynote speaker at the LIBA dinner, furthered
expressed that Liberia lacks the ability to make settlement of the huge debt
burden to an extern thereby decreasing the country's credit worthiness
internationally.
The CBL deputy Governor also pointed out that the basic social services like
safe drinking water, health; electricity, education, transportation, and
housing amongst others are presently inadequate.
Mr. Cooper spoke of the high poverty rate in the country, which he noted has
widened the gab of destitutions day by day as Liberians return home massively.
The CBL deputy boss also lamented the multitude of socio-economic problems that
plague the nation, especially the economic sector, calling for the involvement
of every Liberian and partner in progress to come and jointly save the country.
"The real or productive of the country's economy is currently bin shambles with
its production level far below prewar level," Mr. Cooper added, saying that
besides, development concerning extended factor has also been unfavorable for
Liberia for many years.
He further observed the halting of export activities which affected the foreign
exchange generation of the country as the result of the civil war has
exacerbated the problem of Liberia.
The civil war, he said narrowed down the financial sector, forcing 11 of the 14
banks and several insurance companies to closed. This has cause the level of
financial intermediation low and the overall activities of the banking system
inadequate for the needs of the country's economy.
Confidence crisis, together with other unnamed factors have continued to
undermine the viability of the country's banking sector, calling on the
business community to invest in the banking sector of the country to once again
make it viable.
"For some time now, we realize that that the component of total currency in
circulation outside the banking system continues to account for more than 50
percent and this benefits the preference to you the public to hold your cash in
other saving outside the banks," he said, adding that the task the nation is
faced with at present is to reconstruct and to restore confidence.

   

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