Country Report Liberia June 2011

Economic policy: State initiatives to promote investment are introduced

The Central Bank of Liberia has introduced a US$5m stimulus package for Liberian-operated small and medium-sized businesses under a "credit stimulus initiative", the first of its kind in the country. Under the arrangement, which is intended to promote the expansion of the middle classes by encouraging investment in private enterprises, interest rates payable will be reduced from the market rate of 14.3% to just 8%. The small scale of the scheme will limit its impact, but if it is successful it may be scaled up in future. The government has also recently announced a new National Industrial Policy, aimed at diversifying the economy, maximising the productive use of the country's resources and strengthening the role of the government in the co-ordination of private investment into the country. The policy will be implemented by an Industrial Co-ordination Committee, headed by the Ministry of Commerce and comprising ten other ministries and agencies.

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