By Jerromie S. Walters
The World Bank has suspended Liberia’s right of the respective borrower(s), thus denying any further withdrawal of unwithdrawn amounts under the Disbursing Loans, and (b) the right of the respective recipient(s) thereof to make any further withdrawal of unwithdrawn amounts under the following Trust Fund grants and loans(“Disbursing TF Grants/Loans”) (the Disbursing Loans and the Disbursing TF Grants/Loans, collectively, the “Suspended Loans”)
In a letter dated November 15, 2023, from Ousmane Diagana, Vice President, Western and Central Africa, subject: “Republic of Liberia: Suspension of Disbursements” the World Bank states that on October 31, 2023, it notified Republic of Liberia (Member Country”) of the Bank’s intention to suspend withdrawals under all effective and not fully withdrawn IDA financings, Project Preparation Facility (PPF) advances and Institutional Development Fund
(“IDF”) grants to or guaranteed by the Member Country (collectively, the “Disbursing Loans”), unless all payments due and payable under the Disbursing Loans were received by November 14,
2023.
By the same notice, the Bank notified the Member Country that certain other grants and/or loans financed under trust funds administered by the Bank: (1) made to or guaranteed by the Member Country, or (2) made to other recipients for financing projects carried out in the territory
of the Member Country might also be suspended.
“With utmost regret, we inform you that, pursuant to the General Conditions or Standard Conditions (as the case may be and as defined in the agreement providing for the respective Disbursing Loan), applicable to each of the Disbursing Loans, the Bank suspends as of 12:01 am., Washington, D.C., time November 15, 2023, (a) the right of the respective borrower(s) thereof to make any further?withdrawal of unwithdrawn amounts under the Disbursing Loans, and (b) the right of the respective
recipient(s) thereof to make any further withdrawal of unwithdrawn amounts under the following Trust Fund grants and loans(“Disbursing TF Grants/Loans”) (the Disbursing Loans and the Disbursing TF Grants/Loans, collectively, the “Suspended Loans”)”
In the letter which was addressed to Samuel D. Tweah Jr., Minister
Ministry of Finance and Development Planning, the World Bank says the suspension will not apply to withdrawals under the Suspended Loans for the
following items (“Exempted Items”). “Withdrawal applications received by the Bank on or before the date 90 days after the
Suspension Date, covering payments made or due to suppliers and contractors under
contracts signed prior to suspension, for goods supplied, services provided, and works carried out within 60 days after the Suspension Date, Payment requests from commercial banks holding special commitments issued by the Bank on or before the Suspension Date.”
“Until the suspension is lifted, no disbursement will be made to the designated account(s) of the
Suspended Loans. Nevertheless, applications documenting eligible expenditures from these!account(s) should continue to be delivered to the Bank. Except as the Bank may, in its sole discretion determine, applications providing evidence that designated account balances have been fully drawn down to meet the expenditures for Exempted Items, and any other eligible expenditures, must be delivered to the Bank before the Bank will consider any application for direct payment or reimbursement of payments for Exempted Items However, the Bank will continue to withdraw from the loan account of the relevant.
Moreover, the communication adds, “Suspended Loan and pay amounts
requested by commercial banks and payable under outstanding special commitments issued by the Bank on or before the Suspension Date. In addition, all other restrictions applicable to payments overdue by forty-five (45) days will
continue to apply until the suspension is lifted.”
As is standard Bank practice, the World provides that the suspension will continue until the Member Country and all other
borrowers are current on all payments owed to the Bank under the Suspended Loans.Being current on all payments includes not only payments thirty (30) days or more overdue, but also all other
payments due as of the date the Bank receives payment, regardless of the number of days since they fell due. We sincerely hope that all such payments will be cleared soon to allow resumption of withdrawals
for the execution of the important operations the Bank has been supporting.”