Sierra Leone ends IMF credit facility arrangement, seeks more funds
Sierra Leone has concluded its eighth and final review under the Extended Credit Facility (ECF) arrangement with the International Monetary Fund (IMF). This was confirmed by the IMF Executive Board’s statement.
Sierra Leone’s exit unlocks immediate access to approximately US$20.7 million, according to local news outlet, Awoko Newspaper.
This latest disbursement of SDR 15.555 million brings the total disbursements under the arrangement to SDR 124.44 million, approximately US$165.6 million.
Finance Minister Sheku A.F. Bangura, while reaffirming the government’s vision of transforming the economic situation in the country through the implementation of crucial fiscal reforms and prudent debt management, said that the IMF move would complement the efforts of Bank of Sierra Leone in adopting a proactive monetary policy stance.
This, according to him, will positively impact the economic indicators including inflation and exchange rates in the country.
“The combination of these policies will promote macroeconomic and financial stability and lay the foundation for inclusive green and sustainable growth as we look forward to further engagements with the Fund on the successor program,” Minister Bangura was quoted by Awoko Newspaper.
The government of Sierra Leone aims to address macroeconomic issues the country is currently facing through such moves.
Sierra Leone’s ECF program aimed at reducing inflation among other financial repairs, was initially approved on November 30, 2018, for SDR 124.44 million (about US$172.1 million at that time), covering a period of 43 months.
With the successful completion of the eighth, Finance Minister Bangura announced the commencement of discussions on a successor programme with the IMF in 2024.
Meanwhile, the IMF Board has stressed the need for continued efforts toward restoring the country's macroeconomic stability.
