The government of
Making the disclosure to representatives of the
"Recently the rubber sector, which is a very important part of the Liberian economy contributed significantly to the employment and growth has experienced a sharp drop in income due mainly to the fall in the price of rubber," said Dr. Jones.
Continued the CBL Governor: "This has posed a serious challenge to the Liberian rubber farmers in maintaining their operations. In view of the serious implications on the economy, from the fall in the price of rubber, the government of
Stressing the importance of resuscitating the rubber industry at such a time when the industry is serious need, Dr. Jones said the government has a responsibility to keep key contributors to the Liberian economy in a stable condition that will ensure sustained growth, which will have a positive impact on the citizenry.
"Let me state that these programs are necessary to ensure that the private sector is given the needed support through the banking industry to keep the economy of
"Additionally, the CBL has made a placement with the
Also speaking during the occasion, which was held at the CBL edifice on
"The government of
"This has been and is a perfect example of interconnectivity; when our people are hurting, this government decides it is important to respond quickly, respond forthrightly and respond decisively and that is what is happening. It is the government's way of showing its firm support to the rubber planters and a firm support for the industry."
Responding to the GoL's effort to respond to the needs of rubber planters across the country, the head of the RPAL Mr.
"We've made many attempts at the RPAL along with the banks, especially LBDI, the national bank to ensure that we could secure financing for the farmers. While we were in the process of doing this, the world market slummed again and this began in 2011, rubber prices peaked at about
"During that time, most of the farmers took the surpluses and reinvested these surpluses in new planting in new housing, sanitation for the workers. So, no one in their wildest dream or farmer for that matter thought that we were going to be prepared for such a major crisis and when this crisis came, it came suddenly. The price continues to come down, but beginning November of last year, it just took a deep fall."
He said the rubber industry in
"It is not that the industry is not making money, the rubber industry is making money; if you check the world market, the tyres companies are making a huge windfall profit right now, but unfortunately we in
"We are a major employer, we are a foreign exchange earner if we didn't do something we would see this sector fall. We have all of this rubber that is now maturing and we have a situation where we do not have a medium to long-term financing and governor, I must admit to you, this is the first medium to long-term financing that we've seen for a long time."
Speaking on the challenges faced by the industry
"Of late, Firestone came in in 2006 after the election of this government and began what we call the rehabilitation process and since that process began we have planted approximately 40,000 acres of new rubber. If you go into the central belt upper Montserrado, Margibi, Bong, Nimba you'll be surprised to find the amount of rubber (not on the main road but) in and all this requires financing."
The head of the
"Our appeal to your workers and the stakeholders who also depend on you for sustainability is that we hope and pray they will continue to give you the support, so that what is being initiated today, as a small stimulus facility of around one and a half million US dollars equivalent will grow into tens of millions of dollars and will see the full resuscitation of the rubber sector not just in the context of producing rubber.
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