A huge step in reducing Liberia’s crippling foreign debt:
In a huge step forward, this week Liberia slashed its foreign debt by buying back $1.2 billion in commercial debt — about one-quarter of its foreign debt — from its private foreign creditors, including banks, hedge funds, and other “distressed debt†investment funds. President Ellen Johnson Sirleaf announced today that the Government had purchased the debt at a discount of nearly 97 percent off the face value, the deepest discount ever negotiated on developing country commercial debt. The $38 million needed for the deal was provided by some of Liberia’s strongest partners — the World Bank, Germany, Norway, the United Kingdom, and the United States, so the debt was eliminated at zero cost to the people of Liberia.
Congratulations to everyone involved. Now ignore the example of a certain American President and keep a balanced budget!
Go Madame President!
“A” (as in only one) American President? Gordon—that’s just not being fair to the countless others who didn’t even know the budget was supposed be something that balanced at the end of fiscal years.