World Bank Suspends Gabon's Funding Due to Payment Lapse

The World Bank has halted Gabon's rights to withdraw funds due to approximately $17 million in overdue payments. A leaked letter confirms the suspension as part of a formal procedure in financing agreements. The World Bank expresses confidence that Gabon will address the issue promptly.

The World Bank has suspended Gabon's right to make withdrawals under its programme due to nonpayment of outstanding obligations, a letter seen by Reuters showed on Wednesday.

The financial institution said in the letter that the overdue payments totalled around $17 million as of close of business on June 30. A World Bank spokesperson said it was regrettable that an official letter had found its way into the public media sphere. The suspension of disbursements is a procedure provided for in the financing agreements between the World Bank and countries, 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.