AfreximBank Approves More Than US$ 52 Million For Commercial Banks In Liberia

President of the African Export-Import Bank (Afreximbank), Dr. Benedict Oramah

The board of directors of the African Export – Import Bank, also referred to as Afreximbank, has approved more than U.S. $ 52 million financing facility for commercial banks in Liberia.

Upon assuming office, President George M. Weah instructed Finance Minister Samuel Tweah to issue a bond honoring the Liberian government’s commitment to a legacy U.S.$65 million debt owed to commercial banks by the previous government.

The commercial banks had complained to the new administration that the debt pose serious liquidity challenges for them and appealed to the government to recognize it through a bond issuance.

The bond has now been discounted 80% by AFREXIMBANK and the money should provide critical relief for the banking sector. The debt represents infrastructure loans from 10 years ago that should have been long repaid by the previous administration.

The approval of this discounted facility for seven banks ( the Liberian Bank for Development and Investment, International Bank, Ecobank, United Bank for Africa, Guaranty Trust Bank, Afriland First Bank and GN Bank) by Afreximbank establishes confidence in the Liberian government’s ability to pay and is also critical for future liquidity injections via the local banks for medium to long term economic growth.

Several commercial banks in Liberia have faced liquidity challenges in recent times. This approval will help ease the pressure.

The Government of Liberia will service the bond over the next 7 years through the national budget, beginning with the current one.

As part of this commitment, the government doubled the budget for debt servicing from U.S.$30 million in FY2018/19 budget to around $61 million in FY 2019/20 budget.

The Government is now working with AFREXIMBANK to inject the liquidity in the Liberian economy.

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About Cholo Brooks 14958 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.