This paper reviews the Enhanced Initiative for Heavily Indebted Poor Countries (HIPC) Initiative for Liberia. Performance under the Extended Credit Facility (ECF)-supported program is solid. The third ECF review was completed on a lapse of time basis on December 18, 2009. All but one of the quantitative performance criteria (PC) for the end-June 2009 test date were observed. The PC on total revenue collection was not observed but the deviation was temporary and did not jeopardize program objectives. Structural reform commitments were largely met, though some with delays.
The Executive Board of the International Monetary Fund granted additional interim assistance under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative in an amount equivalent to SDR 4.2 million (about US$6.4 million) for the period March 18, 2010 through March 17, 2011 on a lapse of time basis.1
On March 14, 2008, the Executive Board approved Liberia’s HIPC Initiative decision point and three-year arrangements under the Extended Credit Facility (ECF)2 and Extended Fund Facility (see Press Release No 08/52). The Board also approved interim assistance in the amount of SDR 30.14 million for the period March 18, 2008–March 17, 2010.
The third ECF review was completed on December 18, 2009 (see Press Release No. 09/469) and performance under the ECF-supported program is solid. Liberia is making good progress on debt rescheduling, aiming to reach the completion point in mid-2010 with continued strong efforts.
Interim assistance under the enhanced HIPC Initiative is debt relief granted on its debt service falling due between the HIPC decision and completion points. Once it reaches the HIPC completion point, a country is allowed to receive the full debt relief committed at decision point.
Washington, D.C. 20431 • Telephone 202-623-7100 • Fax 202-623-6772 • www.imf.org
The Executive Board takes decisions under its lapse of time procedure when the Board agrees that a proposal can be considered without convening formal discussions.
The arrangement was initially approved under the Poverty Reduction and Growth Facility (PRGF) but, as of January 7, 2010, all arrangements under the PRGF were renamed arrangements under the Extended Credit Facility.