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IMF Agrees to Cancel Liberia's Debt

Victory for country's president represents coup for new fund head

By Jason Farago,  Newser Staff

Posted Nov 13, 2007 9:20 AM CST

(Newser) – Liberian president Ellen Johnson-Sirleaf got a huge vote of confidence yesterday when the International Monetary Fund agreed to begin eliminating Liberia's debt, the BBC reports. Donor nations have pledged $842 million to get the West African country back on track after 14 years of civil war. "Liberia has established an encouraging track record of macroeconomic management and reforms," said the IMF's new chairman, Dominique Strauss-Kahn.

Liberia suffered more than a decade of brutality under Charles Taylor that left 270,000 dead and the country with $4.5 billion in debt. With Taylor now on trial in the Hague, the debt relief reflects confidence that the country has met political and economic requirements to qualify for help. The deal, which will clear the way for other loans and aid, is also a coup for Strauss-Kahn, who took over Nov. 1.

President Bush, right, chats with Liberian President Ellen Johnson Sirleaf, as he presented her with the Presidential Medal of Freedom during a ceremony in the East Room of the White House in Washington, Monday, Nov. 5, 2007. (AP Photo/Gerald Herbert)
President Bush, right, chats with Liberian President Ellen Johnson Sirleaf, as he presented her with the Presidential Medal of Freedom during a ceremony in the East Room of the White House in Washington,...   (Associated Press)
Liberian President Ellen Johnson Sirleaf right, meets with International Monetary Fund (IMF) Managing Director Rodrigo de Rato at the IMF Headquarters in Washington, Thursday, Oct. 18, 2007. (AP Photo/Caleb Jones)
Liberian President Ellen Johnson Sirleaf right, meets with International Monetary Fund (IMF) Managing Director Rodrigo de Rato at the IMF Headquarters in Washington, Thursday, Oct. 18, 2007. (AP Photo/Caleb...   (Associated Press)
Liberian President Ellen Johnson-Sirleaf.
Liberian President Ellen Johnson-Sirleaf.   (Associated Press)
The new leader of the International Monetary Fund Dominique Strauss-Kahn gestures as he speaks to reporters during a press conference in Paris, Monday, Oct. 1, 2007. (AP Photo/Michel Euler, Pool)
The new leader of the International Monetary Fund Dominique Strauss-Kahn gestures as he speaks to reporters during a press conference in Paris, Monday, Oct. 1, 2007. (AP Photo/Michel Euler, Pool)   (Associated Press)
UN Secretary General Ban Ki-Moon, right, shakes hands with Liberia President Ellen Johnson Sirleaf upon arrival at the Valentino castle in Turin, Italy, Friday, Aug. 31, 2007, to attend a reunion of the UN representatives from all over the world. (AP Photo/Massimo Pinca)
UN Secretary General Ban Ki-Moon, right, shakes hands with Liberia President Ellen Johnson Sirleaf upon arrival at the Valentino castle in Turin, Italy, Friday, Aug. 31, 2007, to attend a reunion of the...   (Associated Press)
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