Africa-Press – Liberia. The Executive Board of the International Monetary Fund (IMF) has approved Liberia’s access to $46 million following the successful completion of the first review of the country’s arrangement under the Extended Credit Facility (ECF).
The funds will be used to bolster Liberia’s international reserves, a critical step in supporting the country’s ongoing economic reforms.
This follows the approval of a $210 million ECF arrangement for Liberia in September 2024. The 40-month financing package is designed to assist Liberia in implementing its Economic Reform Agenda, known as the ARREST Agenda for Inclusive Development (AAID), which aims to address macroeconomic imbalances, enhance debt sustainability, and lay the foundation for more inclusive, private sector-driven growth beyond the enclave sector.
According to the IMF, Liberia’s economic growth remains resilient, with real GDP projected to increase by 5.6 percent in 2025, up from 4.8 percent in 2024. The country has also seen stability in inflation and exchange rates, while the current account deficit continues to shrink.
“The authorities have made substantial progress in restoring fiscal discipline, which is essential for maintaining macro-financial stability,” the IMF stated. “The public debt-to-GDP ratio is on a downward trajectory, reflecting the successful consolidation of the fiscal primary balance.”
The IMF praised Liberia’s recent strides in tax revenue mobilization, controlling recurrent spending, and stabilizing the financial system.
The IMF also emphasized that ongoing efforts to modernize the tax system, including the introduction of a Value-Added Tax (VAT), would be crucial in creating fiscal space for increased investment while ensuring long-term debt sustainability.
Moreover, the IMF noted that Liberia’s renewed focus on addressing challenges in the banking sector and improving governance in public institutions was promising.
However, it stressed that tackling the persistent stock of non-performing loans (NPLs) remains a top priority for ensuring financial stability.
On February 5, the IMF Executive Board also approved Liberia’s request for a waiver regarding the non-accumulation of external arrears, acknowledging the minor nature of the issue and the corrective actions taken by the Liberian authorities.
In response to the Board’s approval, IMF Deputy Managing Director and Acting Chair, Bo Li, commended the Liberian government for its progress in implementing macroeconomic policies and structural reforms.
“The program is broadly on track, and the authorities’ efforts to enhance fiscal sustainability, rebuild international reserves, and address governance weaknesses within public institutions are gradually taking effect,” said Bo Li.
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