Press Release No. 07/254

Press Release: IMF Managing Director Dominique Strauss-Kahn Announces Financing Milestone on Debt Relief for Liberia

November 12, 2007

IMF Managing Director Dominique Strauss-Kahn today announced that the International Monetary Fund has secured sufficient financing pledges from member countries to allow the Fund to provide debt relief to Liberia. When these pledges, amounting to more than SDR 530 million (US$842 million) are formalized, a process will be followed of arrears clearance and new Fund financing that will enable the delivery of HIPC Initiative and other debt relief to Liberia.

Mr. Strauss-Kahn applauded the financing breakthrough, noting, "Today's milestone is a critical step in moving Liberia onto a path toward comprehensive debt relief. We will continue to support the post-conflict recovery, building on Liberia's many achievements over the past two years."

The Managing Director offered his thanks to the IMF's member countries for their generous support, adding, "I would like to record my appreciation for the leadership of President Johnson-Sirleaf and her economic team. I also wish to acknowledge the efforts of many leaders around the world in this cooperative effort, including in low income countries, as well as for the personal support of Bob Zoellick at the World Bank.

"Despite difficult post-conflict circumstances, the Liberian government has established an encouraging track record of macroeconomic management and reforms, which the IMF has supported through technical assistance and policy advice. IMF staff are currently finalizing discussions with the Liberian authorities on a three-year, IMF-supported program, so that Liberia can build upon the initial economic recovery, maintain the strong growth needed to reduce poverty, and restore debt sustainability," Mr. Strauss-Kahn said.

For additional background on Fund relations with Liberia, see: http://www.imf.org/external/country/LBR/index.htm