THE IMF IS FAILING LIBERIA

Debt Campaigners to IMF, Key Shareholders: No more delays! Cancel Liberia's Debt Now!

Jubilee USA Network * Africa Action * Eurodad * Foreign Policy In Focus

FOR IMMEDIATE RELEASE: Saturday, October 20, 4:30pm

Contact: Neil Watkins, 202-421-1023 or Kristin Sundell 443-845-4461, Jubilee USA; Marie Clarke Brill, Africa Action, 202-255-7849; Emira Woods, Foreign Policy in Focus, 301-523-2979; Gail Hurley, Eurodad +32 498 293 075

Washington, DC – Jubilee USA Network, Africa Action, and European Network on Debt & Development (Eurodad) reacted with outrage today as the International Monetary Fund failed to reach agreement to clear the arrears owed by Liberia to the Fund, a necessary step before Liberia can access life-saving debt cancellation.

"The IMF and its main shareholders ought to be ashamed of their broken promises to Liberia," said Emira Woods, Board Chair of Africa Action and Co-Director of Foreign Policy in Focus. "Liberia has met all of the onerous requirements demanded by the IMF to access debt cancellation, and they still have gotten nothing in return. Meanwhile, the impoverished majority in Liberia pays the price for the IMF's inaction."

Liberia's debt to the IMF, the World Bank, and other creditors totals more than $4.5 billion. Much of this debt is odious or illegitimate in nature, having been run up by the brutal regime of Samuel Doe, with no benefit to the people. During years of civil war, Liberia failed to make its scheduled payments, resulting in huge arrears which the IMF insists must be cleared before Liberia can enter the debt cancellation process.

"Liberia's debt and the arrears are both the result of irresponsible lending. Every delay amplifies this injustice; now is the time for accountability on the part of the creditors," said Marie Clarke Brill, Interim Executive Director at Africa Action.

Shareholders at the IMF have been working for more than 18 months to devise a plan to clear the $800 million in arrears the country owes to the IMF. A complex formula to mobilize the needed resources has been developed, but a funding gap of $60 million-$90 million remains. IMF shareholders are currently debating who should cover the remaining costs. Some argue the G-8 should chip in more; others argue that the IMF should use its substantial internal resources to make up the difference; while others argue middle-income countries should do more to contribute their fair share.

"The IMF is playing a blame game rather than investing the time and energy necessary to come up with the remaining cash. The reality is that IMF management, the Bush administration, and other leading shareholders including middle-income countries all share responsibility for this failure,"
said Neil Watkins, National Coordinator of Jubilee USA Network, an alliance of 80 religious denominations, development agencies, and human rights groups. "While the Bush administration has been active, they are not doing enough. If this administration is serious about supporting Liberian President Ellen Johnson-Sirleaf, President Bush and Secretary Paulson need to get on the phone with key shareholders and make a deal or come up with the extra money themselves now."

"Belgium is the only rich country not to contribute its share of resources to clear Liberia's arrears, and this is not acceptable," said Gail Hurley of EURODAD, a network of 53 European development organizations.

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