Monday, 22 October 2007




WASHINGTON (Reuters) - U.S. President George W. Bush on Thursday said the International Monetary Fund should help Liberia cancel its debts and that Treasury Secretary Henry Paulson would take that message to IMF meetings this weekend.

His call was later echoed by Liberian President Ellen Johnson-Sirleaf and U2 lead singer and debt activist Bono.

"We are committed to helping you relieve your debt," Bush said after meeting with Johnson-Sirleaf in Washington ahead of the IMF and World Bank meetings starting on Saturday.

"It's very important for our friends in the IMF to recognize that debt relief for Liberia is a part of our agenda, and I would hope that they would help you, help you with debt relief. I think it's important," Bush said.

Bureaucratic hurdles and resistance by some IMF donor nations, including large developing countries, over how to finance the IMF's portion of the debt -- around $900 million (440.5 million pounds) -- have stalled Liberia's entry into a global debt relief program.

Johnson-Sirleaf, Africa's first woman president, last year inherited a country ruined by a 14-year civil war, rampant corruption and foreign debts of about $4.5 billion, which creditors promised to cancel.

Writing off the debt would give Liberia more resources to spend on anti-poverty and reconstruction programs.

"Liberia has been waiting patiently for over a year for the international institutions to reach agreement on financing debt relief," Johnson-Sirleaf said in a statement. "We have done our part by establishing a strong record of prudent economic management and policy reform.

"We urgently need to move forward to resolve this issue as quickly as possible," she said.


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