The President of Liberia, George M. Weah, has submitted to the House of Representatives a financing agreement for ratification under the title, “Rural Economic Transformation Project”, between the Republic of Liberia and International Development Association (IDA). The agreement was submitted to the House on Tuesday, June 22, 2021 during the House’s regular session on Capitol Hill.
According to the President’s communication, IDA has agreed to extend to Liberia a credit, which is deemed as non-concessional financing, in the amount of US$55,000,000 (fifty-five million United States dollars) to improve productive and market access for smallholder farmers and agri-enterprise for selected value chains in project participation in the counties.
The commitment charge rate, according to the President’s letter, is one quarter of one percent (1/4 of 1%) per annum on the withdrawn credit balance. The principal payment dates are February 15 and August 15 in each year, beginning August 15, 2031 through August 15, 2049 at 2.63% and on February 15, 2050 at 2.69%.
According to President Weah, this agreement is in the best interest of the country, and its ratification will help improve the country’s economy as well as transform mall market productivity. This agreement, according to the President’s letter, will empower smallholder farmers in some counties.
“Dear Mr. Speaker: I trust the Legislature will ratify this agreement, which will improve productivity and market access for smallholder farmers in certain counties,” the President’s communication read.
Following the reading of the financing agreement, a motion was made forwarding the instrument to the House’s Joint Committee on Public Accounts and Expenditures, Ways Means and Finance, Judiciary and Agriculture. The joint committee is expected to report to plenary in one period for legislative action.