Liberia: Enhanced Initiative for Heavily Indebted Poor Countries-Completion Point Document and Multilateral Debt Relief Initiative

IMF Staff Country Reports, July 6, 2010

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Liberia: Enhanced Initiative for Heavily Indebted Poor Countries-Completion Point Document and Multilateral Debt Relief Initiative

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Bibliographic details

• Published: July 6, 2010
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781455202447.002

Summary

• The Liberia Poverty Reduction Strategy (LPRS) was completed in March 2008.
• Since reaching the decision point in March 2008, Liberia has maintained macroeconomic stability.
• The global financial crisis adversely impacted Liberia shortly after the LPRS was released: investments were postponed, and export revenues were sharply reduced in the rubber sector as external demand weakened.
• The authorities’ strict adherence to a cash-based balanced budget, in place since February 2006, has contributed substantially to regaining fiscal discipline, putting debt on a downward path while also increasing pro-poor expenditures.

Key findings and analysis

• Macroeconomic stability maintained since the decision point in March 2008.
• External shock: global financial crisis led to postponed investments and sharply reduced rubber export revenues.
• Fiscal policy: cash-based balanced budget in place since February 2006 was central to regaining fiscal discipline.
• Debt trajectory: fiscal discipline has contributed to placing debt on a downward path.
• Social spending: fiscal consolidation accompanied by increases in pro-poor expenditures.

Subjects and keywords

• Subjects:
  • Asset and liability management
  • Debt management
  • Debt relief
  • Debt service
  • External debt
  • Financial institutions
  • Government debt management
  • Public financial management (PFM)
  • Stocks
• Keywords:
  • CR
  • debt forgiveness
  • Debt management
  • Debt relief
  • Debt service
  • exchange rate
  • Global
  • Government debt management
  • HIPC assistance
  • ISCR
  • Liberian authorities
  • PFM reform agenda
  • present value
  • Stocks
  • Sub-Saharan Africa

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• _cr10192 - Executive Summary
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  • _cr10192 - Executive Summary (PDF)