Pressure to write off Liberia's $1.2bn debt

Financial Times reporters Krishna Guha and Dino Mahtani explore where the pressure comes from to to write off Liberia's $1.2bn debt and what can be done to resolve the situation.

From the article:

Nancy Birdsall, director of the centre for global development, says the need to clear arrears "is a very big problem" and warns that humanitarian aid could decline before the flow of development funds gets under way.

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Some Liberian officials say that if external intervention to boost the government's capacity to govern is delayed, its institutions could fall prey to corrupt officials with wartime connections who are likely to drain state resources for personal gain.

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"The international community has got to decide whether it is serious about helping Liberia. It has got to dip into its pockets," says one official.