The World Bank has suspended Liberia from accessing “unwithdrawn loans” due to the failure of President George Weah’s administration to service previously disbursed loans. 

The decision, which raises concerns about the country’s economic stability, comes as the outgoing Weah administration is 60 days behind on its debt repayment.

World Bank vice-president of the Western and Central Africa region, Ousmane Diagana explained that the suspension decision comes after the outgoing Weah administration failed to meet its debt payment obligations.

This, despite Finance Minister Samuel Tweah being notified ahead of time on October 31, that “Liberia has reached 60 days overdue on its debt repayment to the World Bank.”

In its response, the World Bank emphasises that its, “ability to mobilise resources for the benefit of the country and its people, depends critically on the punctual servicing of debt to the bank. We hope that the arrears situation can be resolved promptly so that operations can resume for the benefits of the people of Liberia.”

The World Bank has been a long-standing partner of Liberia and has reiterated its commitment to support the African state to overcome the development challenges the country is enduring.

It is suspension letter to Tweah, dated November 15, Diagana wrote, “we sincerely hope that all such payments will be cleared soon to allow the resumption of withdrawals for the execution of the important operations the Bank has been supporting.” 

The letter said the suspension would affect financing from the International Development Association, Project Preparation Facility Advances, and Institutional Development Fund grants. 

The suspension, the letter added, is also expected to affect other grants and loans financed under trust funds administered by the World Bank, which might be made to or guaranteed by Liberia or other recipients for projects carried out within the country.

Diagana said the World Bank regretted having to take such action but indicated that the suspension would only be lifted once all outstanding payments are settled, expressing “sincere hopes for a swift resolution to allow the resumption of withdrawals, supporting the crucial operations the Bank has been backing in Liberia.”

Meanwhile, Diagana’s letter noted that during the suspension period, the Bank will continue to withdraw from the loan account of the relevant suspended loan to pay amounts requested by commercial banks and payable under outstanding special commitments issued by the Bank on or before the suspension date.