DAKAR (Reuters) - The African Development Bank (ADB) approved on Tuesday the cancellation of $255 million in arrears owed by Liberia, following the International Monetary Fund (IMF) and the World Bank in annulling the war-ravaged nation's debts.

The ADB hailed progress made by President Ellen Johnson-Sirleaf's government in restoring peace, improving governance and spurring reconstruction in the wake of the 1989-2003 war which left some 200,000 people dead.

The bank also approved a new $24 million loan to fund a road infrastructure project in southeastern Liberia.