The World Bank has suspended Gabon’s right to make loan and grant withdrawals from July due to non-payment of outstanding obligations, according to a letter seen by media on Wednesday.
Gabon, a central African country, is currently repaying at least 11 loans from the World Bank Group. Since 2012, the World Bank has loaned or granted Gabon over $1 billion, with more than $700 million already disbursed.
As of June 30, Gabon’s overdue payments totaled around $17 million, the bank stated in the letter.
A World Bank spokesperson expressed regret that the official letter had leaked to the media, noting that the suspension of disbursements is a standard procedure outlined in financing agreements.
“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.
The World Bank’s active projects in Gabon focus on public health, skills development, and statistics, as listed on its website.
The suspension comes against the backdrop of political instability in Gabon, where a junta seized power in August last year, ousting President Ali Bongo in the region’s eighth coup in three years.
