World Bank Suspends Gabon's Loan Withdrawals Amidst Overdue Payments

The World Bank has suspended Gabon's ability to make loan and grant withdrawals due to overdue payments totaling around $17 million as of June 30. Gabon is currently repaying at least 11 World Bank loans. This suspension follows the eighth coup in the West and Central African region in three years.

The World Bank has suspended Gabon's right to make loan and grant withdrawals from July due to non-payment of outstanding obligations, a letter seen by Reuters showed on Wednesday.

The central African country is currently repaying at least 11 World Bank Group loans, the bank's website shows. The World Bank has agreed to loan or grant Gabon more than $1 billion since 2012, disbursing more than $700 million.

The bank said in the letter that overdue payments totalled around $17 million as of June 30. A World Bank spokesperson said it was regrettable that an official letter had found its way to the media. The suspension of disbursements is a procedure provided for in financing agreements, the spokesperson said.

"In the case of Gabon, we are confident that the authorities will take steps to regularize the situation as soon as possible," the spokesperson said in a statement. Active World Bank projects in Gabon include public health, skills development and statistics projects, according to its website.

A junta seized power in Gabon in August last year, ousting president Ali Bongo in the West and Central African region's eighth coup in three years.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)