Monrovia, Liberia. December 10, 2014
– IFC, a member of the World Bank Group, announced an agreement with GT Bank Liberia to provide a $7.5 million liquidity facility. It will support the importation of basic goods, including energy, food and agricultural commodities, and other manufacturing goods that will help strengthen an economy deeply impacted by the Ebola crisis.
The IFC support is provided through the Ebola Emergency Liquidity Facility, a rapid response facility combining working capital and trade support that will provide US dollar liquidity to finance import of basic goods in Liberia. This IFC initiative is part of the World Bank Group’s broad effort to respond to the Ebola epidemic and prepare for economic recovery in the countries most affected by the crisis.
“As the Ebola crisis continues, trade and business activities are declining and reducing customers’ ability to promptly meet repayment obligations. This increases liquidity risks in the banking system" said Dan Orogun, Managing Director, GT Bank Liberia, “IFC, our long term partner, is further demonstrating its commitment to the development of the Liberian economy through this timely liquidity facility. Together we believe this will help to ease the pressure on the economy, and support Liberia's recovery.”
The primary cost of this tragic outbreak is in human lives and suffering—but the crisis also is wiping out hard-earned development gains in the affected countries, and will worsen already entrenched poverty. A World Bank Group report from earlier this month issued an economic update showing the Ebola crisis continues to cripple the economies of Guinea, Liberia and Sierra Leone, sharply downgrading growth estimates for 2014 and likely resulting in negative or contracting growth next year.
“Much international and local effort is being channeled towards containing the virus, and IFC is working to bring liquidity that will support businesses through this crisis and contribute to economic recovery” said Frank Ajilore, IFC Country Representative for Liberia, “The liquidity facility will give a boost to declining trade and improve business activities that will support the recovery of the Liberian economy.”
The World Bank Group is mobilizing nearly $1 billion in financing for the three countries hardest hit by the Ebola crisis. This includes $518 million for the emergency response. The funding is helping Guinea, Liberia and Sierra Leone provide treatment and care, contain and prevent the spread of infections, help communities cope with the economic impact of the crisis, and improve public health systems. IFC aims to deliver at least $450 million in commercial financing that will enable trade, investment and employment in Guinea, Liberia and Sierra Leone.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
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