House Ratifies Key Loan, Financing Agreements
By Wilfred Gortor, LINA
MONROVIA, June 30 (LINA) - The House of Representatives Thursday ratified two loan agreements in the amounts of US$20 million and US$12 million signed between Liberia and the OPEC Fund for International Development and the Arab Bank for Economic Development in Africa respectively.
The House also ratified on Thursday, two financing agreements in the amount of 42,700,000 Special Drawing Rights, which is equivalent to US$60 million and 7,200,00 Special Drawing Rights (SDR), which is also equivalent to US$10 million.
The two financing agreements were signed between Liberia and the International Development Association and were presented along with the loan agreements to the Legislature by President Ellen Johnson Sirleaf.
A Special Drawing Right (SDR) is an international reserve asset, created by the International Monetary Fund (IMF) in 1969 to supplement the existing official reserves of member countries.
The SDR is neither a currency, nor a claim on the IMF, but it is a potential claim on the freely usable currencies of the IMF members.
The ratification of the agreements was based upon a recommendation contained in a report from the House joint committees on Ways, Means and Finance, Judiciary, Youth and Sports and Public Works and Rural Development.
The committees recommended in their report to the House plenary on Thursday, that having reviewed and analyzed the financing and loan agreements which were submitted by President Sirleaf, they were convinced that the agreements were in the best interest of the people of Liberia.
The Committees stressed that the agreements will yield increased social benefits for Liberia and its inhabitants as well as improve the nation's economy, among other benefits.
The agreements are to be forwarded to the Liberian Senate for concurrence.