GoL commits to servicing domestic and external debts

Liberia’s current domestic and international debts as of December 2023 total US$2,337.26 billion, of which domestic debt is US$1,022.00 billion (43.73 percent) and external debt is US$1,315.26 billion (56.27 percent).

Monrovia, April 3, 2023—Liberia’s Deputy Finance and Development Planning Minister for Fiscal Policy, Mr. Anthony Myers, has expressed a strong commitment to the Boakai administration’s service of the government’s domestic and external debts.

According to the government’s public debt service portfolio, as captured in the administration’s recently submitted draft national budget to the national Legislature, the total debt service, subscription, and other payables for FY2024 are projected at US$217.28 million, representing a 117.69 percent increase compared to the FY2023 forecast of US$99.81 million. However, US$129.00 million has been allocated to service this debt.

This represents an increase of 29.26 percent compared to the FY2023 forecast of US$99.81 million. Moreover, the overall debt stock as of December 2023 stands at US$2,337.26 billion, of which domestic debt is US$1,022.00 billion (43.73 percent) and external debt is US$1,315.26 billion (56.27 percent).

Mr. Myers attributed the increase in the Ministry of Finance and Development Planning’s budgetary allocation mainly to the government’s commitment to finance the accumulated debt incurred by other government institutions. He said it is so because it is the Ministry of Finance’s responsibility to finance other government entities’ activities and liabilities.

He noted that the allocation of US$129 million was a major reason for the increase in the Ministry’s allocation in the FY2024 draft National Budget.

Minister Myers further clarified that the Ministry of Finance and Development is the government institution responsible for debt management. He stressed that by increasing debt servicing, the government wants to be “responsible” to domestic and foreign partners.

However, servicing the debt obligations to domestic banks, for example, would help strengthen the capital portfolio of the commercial banks and keep them more viable, thus preventing them from collapsing.  

He added that servicing the government’s external debt obligations will help create space for the needed support to finance the government’s development plan for the next five (5) years.

He spoke at the MICAT regular Press Briefing on Thursday, March 28, where he led a team of Senior Managers from the Finance Ministry, including the Deputy Minister of Budget and Development Planning, Hon. Tanneh Brunson, the Deputy Minister of Administration, Hon. Bill McGill Jones, and Hon. Sarah Mulbah.

Honorable Myers also disclosed a more favorable outlook for the country’s economy. It is projected to expand to 5.3 percent in 2024 and by an average of 6.4 percent in the medium term (2025-2027).  

This is progress from the 4.6 percent Real GDP expansion in 2023, which was based on growth in the mining, manufacturing, and services sectors.

The Deputy Minister of Fiscal Policy at the Finance Ministry also expounded on several macroeconomic assumptions that informed the Draft FY2024 National Budget preparation.

Among them were: favorable GDP growth rate, expected rise in imports due to anticipated increase in major commodities outturn in all sectors of the economy, projected increase in government revenue due to expected rise in mining, manufacturing, services, and primary commodity output, moderation of inflation and stability of exchange rate in the medium term, etc.

The draft 2024 Draft National Budget, which was recently submitted to the national Legislature, constitutes a resource envelope of The total draft resource envelope for FY 2024 is United States six hundred ninety-two Million, four-hundred nine thousand, two hundred forty-five dollars fifty-three cents (US$692,409,245.53). 28 percent or (LR41.1 billion Liberian dollars) is domestic currency and US$500.4 million or 72 percent is actual United States Dollars. The projected annual average exchange rate is US$1:213.82 LRD.

The total projected revenue from domestic resource mobilization is US$649.9 million, or 93.9%, while external resources account for US$42.4 million, or 6.1%.