MONROVIA — Liberia's total government debt rose to about US$2.82 billion at the end of December 2025, up roughly 7.2% from US$2.64 billion a year earlier, according to the Central Bank of Liberia (CBL) and the Ministry of Finance.
Public debt is the running total of what the government owes at home and abroad. At US$2.82 billion it stands against an economy of about US$5.16 billion in 2025, a ratio that places Liberia among the more heavily indebted economies in the region even before the cost of servicing that debt is counted.
The stock is dominated by foreign creditors. External debt stood at US$1.63 billion in December, about 57.7% of the total, while domestic debt was US$1.20 billion, or 42.3%. External borrowing is owed largely to multilateral lenders such as the World Bank and the International Monetary Fund and to bilateral partners, and much of it is on concessional terms with below-market interest rates.
The composition matters as much as the size. External debt must ultimately be serviced in foreign currency, which ties repayment to the same export earnings and reserves that support the exchange rate. Domestic debt, owed mostly to local banks, competes with private borrowers for the limited pool of credit in the banking system.
Debt rose steadily through 2025, climbing from US$2.65 billion in March to US$2.80 billion by November before the year-end figure. The increase reflects new borrowing to finance a budget that domestic revenue alone has not covered, set against an economy whose growth has lifted the denominator that debt is measured against.
The burden shapes everything the government can do. Money spent servicing debt is money not spent on roads, clinics or schools, and a heavy external load leaves the country exposed if commodity earnings weaken or global interest rates rise. Liberia reached debt relief under the Heavily Indebted Poor Countries initiative in 2010, and the renewed build-up is a reminder of how quickly obligations can accumulate.
The more revealing measure than the debt stock is the cost of carrying it. Debt service — the interest and principal due each year — competes directly with salaries, services and investment in the budget, and a rising stock means a rising claim on revenue that is already stretched. The concessional terms on much of the external debt soften that bill, but the trend is the wrong way.
What to watch is whether debt growth slows as revenue rises, how much of the budget goes to debt service in 2026, and whether new borrowing stays concessional rather than shifting toward costlier commercial terms.
