International Monetary Fund approves $213.6mn ECF for Liberia

The Executive Board of the International Monetary Fund has approved a five-year arrangement under the Extended Credit Facility (ECF) for Liberia in an amount equivalent to USD 213.6 million.

Based on the statement of International Monetary Fund issued on Wednesday, the credit is intended to help the country restore macroeconomic stability, provide a foundation for sustainable growth and address weaknesses in governance.

“After grappling with challenges for over a year, a consensus on the need for broad-based reform has emerged. The program aims to support the authorities’ strong adjustment efforts, catalyse significant donor financing, and provide a framework within which to implement he authorities’ ambitious reform agenda. The Executive Board’s decision will enable an immediate disbursement of SDR 17 million (about USD 23.4 million),” the IMF said in the statement.

The program will focus on restoring macroeconomic stability. According to the statement released by the International Monetary Fund, the program is a key precondition for a sustainable transition out of fragility, while protecting the poorest segment of the population from the burden of adjustment putting Liberia on a fiscally sustainable path.

The program also intends to catalyse substantial external support, which is critical to ensure that the programmed adjustment can be contained at levels that are politically and economically feasible, while at the same time ensuring public and external debt sustainability. “Liberia’s economic situation is challenging and fragile. Inflation and year-on-year exchange rate depreciation are high at 30 percent and growth is subdued,” the First Deputy Managing Director and acting Chair, Mitsuhiro Furusawa opined at the conclusion of the Board’s discussion on December 11.