News Briefs
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Page 68
The IMF has announced a series of measures to support Liberia with debt relief and new financing.
Over the past two years, the Liberian government has implemented significant reforms to rebuild its economy and reduce poverty after a ruinous 14-year civil war. On March 14, Liberia took another important step toward reintegrating with the global economy: it cleared its longstanding overdue obligations of $888 million and normalized its financial relations with the IMF.
In response, the IMF's Executive Board agreed to restore Liberia's voting rights in the IMF and its eligibility for IMF resources; provide financial support totaling $952 million under the IMF's Poverty Reduction and Growth Facility and its Extended Fund Facility; and offer debt relief, along with other creditors, to cover at least $4.4 billion of Liberia's $4.7 billion debt. These measures should help catalyze support for Liberia from the donor community.
The IMF has actively supported efforts to rebuild Liberia's economy since Ellen Johnson-Sirleaf (above), Africa's first elected female head of state, took office in 2006.
Sub-Saharan Africa's share in global trade has declined since 1970. But the region is benefitting from the recent commodity boom, which has reoriented its trade toward Asia's rapidly growing emerging economies, such as China and India.
A new IMF study, Sub-Saharan Africa: Forging New Trade Links with Asia, analyzes the trade patterns emerging in sub-Saharan Africa and finds that the region is performing below its export potential.
To help realize the region's full trade potential, the study recommends policies to maintain macroeconomic stability, build infrastructure, reduce the cost of doing business, liberalize trade, and reduce shipping costs.
The IMF Executive Board approved in April $66 million in emergency postconflict assistance for Côte d'Ivoire to help strengthen the country's foundation for sustained recovery. IMF First Deputy Managing Director...
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