In a significant financial development, the World Bank (WB) has suspended Gabon's access to loans and grants starting July 2024 due to the country's failure to repay its previous debts. As of June 30, Gabon had overdue debt repayments amounting to approximately $17 million (Tsh. 44.7 billion).
According to Reuters, the Central African nation is currently servicing at least 11 loans from the World Bank. Since 2012, the World Bank has committed over $1 billion (Tsh. 2.6 trillion) in loans and grants to Gabon and has already disbursed more than $700 million (Tsh. 1.8 trillion).
A World Bank spokesperson stated that the suspension of funding is a procedure outlined in their financing agreements. The spokesperson expressed confidence that the authorities will take swift measures to address the situation and restore their financial standing.
This move by the World Bank is expected to impact Gabon's financial operations and development projects significantly. The country's government is anticipated to engage in negotiations to resolve the issue and regain access to much-needed financial resources.
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