MONROVIA, LIBERIA-The International Monetary Fund (IMF) Executive Board has completed the first review of the 40-month arrangement under the Extended Credit Facility (ECF) for Liberia.
According to an IMF release, Liberia is now allowed Special Draw Rights (SDR) of up to 34.3 million, equivalent to about 13.3 percent of the quota or 46 million.
The money, the IMF said, will be used to strengthen Liberia’s international reserve position.
It said:” Liberia’s economic growth has remained strong, with the real GDP growth expected to accelerate to 5.6 percent in 2025 from 4.8 percent in 2024.”
The International Monetary Fund reckoned that inflation and the exchange rate have remained stable, and the current account deficit continues to narrow.
It praised the government for successfully restoring fiscal discipline, which is key for maintaining macro-financial stability while the public debt-to-GDP ratio has started to fall, reflecting a sizable consolidation of the fiscal primary balance.
Meanwhile, the IMF has termed as promising recent progress in mobilizing tax revenues by the Liberian government.
Meanwhile, the IMF Executive Board has approved the government’s request for a waiver of non-observance of the continuous performance criterion on the non-accumulation of external arrears.
The request, IMF said, was based on a minor nature and adopted corrective actions taken by the government.
Following the Executive Board discussion, Mr. Bo Li, Deputy Managing Director, and Acting Chair, said:” The Liberian authorities are making good progress in implementing sound macroeconomic policies and structural reforms. The program is broadly on track, and the government’s efforts to enhance fiscal sustainability, rebuild international reserves, and address governance weaknesses within public institutions are gradually taking effect.”
He urged the government to continue efforts to strengthen fiscal sustainability and mitigate debt vulnerabilities over the medium term.
In line with these efforts, the IMF Deputy Managing Director stated that the approved budget for 2025 aims to improve revenue mobilization, while continuing to rationalize unproductive spending and safeguard priority spending.
According to him, the authorities should press ahead with addressing weaknesses in the Central Bank of Liberia’s (CBL) governance with swift implementation of the recommendations of the compliance and forensic audit reports.
