By: Julius Konton
In a decisive move to reinforce fiscal transparency and restore confidence in public financial management, the Government of Liberia has launched a week-long high-level workshop aimed at developing and validating a Public Debt Procedural Manual, a cornerstone reform designed to standardize and strengthen how the country contracts, manages, and services public debt.
The initiative is being spearheaded by the Ministry of Finance and Development Planning (MFDP), through its Department of Economic Management and Debt Management Unit, and is taking place in the coastal city of Buchanan.
It brings together senior technical officials from Liberia’s core economic and legal institutions to build a unified and rules-based framework for debt governance.
A Coordinated National Approach
Participants include representatives from the General Auditing Commission, the Central Bank of Liberia, and the Ministry of Justice, reflecting a whole-of-government approach to an issue that has long been flagged by auditors and international partners as a structural vulnerability.
The auditing authority is providing technical guidance on compliance and post-borrowing accountability, while the Central Bank is focusing on the implications of debt servicing particularly external obligations and selected domestic instruments on monetary stability and liquidity management.
Legal experts from the Justice Ministry are reviewing statutory compliance, arbitration mechanisms, and constitutional provisions governing sovereign borrowing.
Responding to Audit Findings and Reform Pressures
Delivering special remarks, Deputy Minister for Administration at the MFDP, Bill McGill Jones, underscored that the manual is intended to be a practical, enforceable, and living document, not merely a policy statement.
“This initiative goes beyond the Ministry of Finance,” Jones emphasized. “It is a Government of Liberia process that demands shared responsibility, collective ownership, and institutional discipline to ensure transparency, fairness, and equity in public debt management.”
He noted that the exercise directly responds to repeated audit findings from the General Auditing Commission, which in past reports identified procedural gaps, weak documentation, and fragmented oversight in Liberia’s debt management architecture.
According to international financial assessments, Liberia’s public debt has fluctuated significantly over the past two decades rising sharply during the post-conflict reconstruction period, declining following debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative, and increasing again in recent years due to infrastructure financing, external shocks, and pandemic-related expenditures.
While Liberia remains at moderate risk of debt distress, analysts have consistently stressed that stronger institutional controls are essential to maintaining sustainability.
Legal Safeguards and Risk Mitigation
For his part, Cllr. J. Alben Greaves, Legal Counsel at the Ministry of Justice, stressed that debt sustainability is not only an economic issue but a legal one.
He called for strict adherence to constitutional and statutory provisions governing public borrowing and highlighted the importance of robust arbitration clauses to shield the government from costly international litigation.
He further emphasized that the new framework must clearly address liability allocation, debt restructuring protocols, and cross-default risks, areas that have historically exposed governments across developing economies to significant fiscal shocks.
Aligning with International Best Practices
The development of the Public Debt Procedural Manual is also closely aligned with policy benchmarks supported by Liberia’s international development partners, including the World Bank, the African Development Bank, and the European Union.
These institutions have consistently linked access to concessional financing and budget support to demonstrable improvements in debt transparency, reporting, and institutional coordination.
Such reforms form part of the government’s broader medium-term development agenda, which seeks to balance infrastructure investment with fiscal prudence, enhance investor confidence, and safeguard macroeconomic stability.
A Milestone for Financial Governance
Earlier, Director of Debt Management at the MFDP, Vowu D. Molubah, described the workshop as a critical milestone in strengthening Liberia’s internal controls and accountability systems.
“A clearly documented and consistently applied debt management process is essential for transparency, risk mitigation, and regulatory compliance,” Molubah said.
“This manual will help ensure consistency across government and reinforce confidence in Liberia’s financial management systems.”
He reaffirmed the Ministry’s commitment to delivering a robust, user-friendly, and enforceable Public Debt Procedural Manual, capable of guiding public officials, satisfying audit requirements, and supporting sustainable national development.
As Liberia continues its post-conflict economic transformation, officials say the success of this initiative could mark a turning point shifting public debt management from fragmented practices to a disciplined, transparent, and internationally aligned system capable of withstanding future fiscal shocks.
