Monrovia – The two Chambers of the Legislature Tuesday voted to ratify the Financing Agreement for the third Poverty Reduction Support Development Policy Operation though there were some opposing views.
Report by Henry Karmo – [email protected]
The agreement was entered into between the Government of Liberia and the International Development Association.
The Financing Agreement was Tuesday, June 27, 2017, sent to the Legislature by the President.
The legislature received the agreement and subsequently endorsed and passed it by both chambers.
The request for immediate passage was rejected by some members of both Houses (Senate, House of Representatives) who were in the minority.
Representative Acarous Gray (CDC-District #8 Montserrado County) and Senator Oscar Cooper (UP-Margibi County) all walked out of session in protest to their colleague’s decision.
They angrily made unfavorable comments against their colleagues who were in favor of the immediate passage of the agreement.
Like Gray, Senator Cooper too opted for the agreement to be read and opened for review by the body before passage but that request was rejected by his colleagues who opted for the agreement to be immediately ratified.
According to President Ellen Johnson Sirleaf in a communication to the legislature, the purpose of the financing agreement is to help government realize it goals and objectives in the effective implementation of the Economic Stabilization Recovery plan that was adopted after the Ebola Virus Disease (EVD) outbreak and mitigation of the fiscal gap for Fiscal year 2016/2017.
“This financing Agreement when ratified into law, will enable Government achieve these objectives and improve the economic conditions that will help to alleviate poverty and make our citizens self-efficient
“Mr. Speaker, this financing Agreement is vital to the improvement of our economic and social conditions, and also the sustainability of our peace. I, therefore, request your kind and timely ratification into law of the Financing Agreement between the government of Liberia and the International Development Association,” the President Stated in her communication.
The agreement dated June 27, 2017, was entered into between the Republic of Liberia and the International Development Association for the purpose of providing supplemental financing in support of program (as defined in the Agreement).
According to the agreement, the Association has decided to provide the supplemental financing on the basis, inter alia of the actions which the recipient (Liberia) has already taken under the program.
Section II of the agreement states that the Association may agree to the recipient, on the terms and conditions set forth or referred to in the agreement, a grant and credit (collectively, Financing) in the amount including; an equivalent of four million eight hundred thousand special drawing rights (SDR 4,800,000(grant) and an amount equivalent to four million one hundred thousand special drawing rights (SDR 4, 100,000) (credit).
The agreement also states that the recipient may withdraw the proceeds of the financing in support of the program in accordance with section II of schedule 1 to the agreement, the maximum commitment charge rate payable by the Recipient on the withdrawn financing balance shall be one-half of one percent (1/2 of 1%) per annum.
The service charge payable by the recipient on the withdrawn credit balance shall be equal to three-fourths of one percent (3/4 of 1%) per annum.
The payment dates are October 1 and April 1 in each year with the possible amount of the credit to be repaid in accordance with the repayment schedule set forth in schedule two to this agreement.