President Ellen Johnson Sirleaf
Pres. Sirleaf Presents US$35m Loan Accord For Ratification
By Wilfred Gortor, LINA
MONROVIA, July 19 (LINA) - President Ellen Johnson Sirleaf has submitted for ratification a loan agreement between Liberia and the African Development Fund in the amount of US$24,805,000.
The loan agreement, which is stated in Unit of Account (UA), according to a communication from the office of President Sirleaf, is equivalent to a total of US$35 million and is intended for the Mano River Union Road Development and Transport Facilitation Program (MRU/RDTFP).
A Unit of Account is a nominal monetary unit of measure or currency used to value cost of goods, services, assets, liabilities, income, expenses or any economic item.
It is one of the three known functions of money as it lends meaning to profits, losses, liability, or assets.
The loan, according to the Liberian leader, is also meant to provide additional financing for the foreign currency cost and part of the local currency cost of the multinational MRU/RDTFP, involving Liberia, Cote d' Ivoire and Guinea.
The Maximum Commitment Charge Rate payable by the Government of Liberia on the undisbursed portion of the loan, according to the agreement, shall begin to accrue 120 days after the date of the signature of the agreement shall be one-half of one percent (0.50%) per annum.
President Sirleaf said the loan is for a period of 30 years after a 10-year grace period commencing from the date of the agreement, at the rate of two percent of the principal per annum from the 11th to the 20th year inclusive and at the rate of four percent of the principal per annum thereafter.
President Sirleaf disclosed that service charge payable on the principal amount of the loan disbursed and outstanding amount shall be three quarter of one percent (0.75%) per annum, and that payment dates of the loan are 15th April or 15th of October in each year.
"The executing agencies under the loan agreement are the Ministry of Public Works and ECOWAS in consultation with the MRU General Secretariat," President Sirleaf noted.