The International Monetary Fund (IMF) has reported that it held discussions with Sierra Leonean authorities regarding a new arrangement under the Extended Credit Facility (ECF). The focus of these talks was to gain an understanding of the authorities' development objectives and identify necessary reforms to achieve macroeconomic stability and ensure debt sustainability.
Christian Saborowski, who led an IMF team to Freetown from April 8 to 12, 2024, discussed Sierra Leone's request for financial support under a new ECF arrangement. Further discussions were held during the Spring Meetings of the IMF and the World Bank Group in Washington, DC, as stated in an IMF press release.
According to the same press release, Saborowski said: "The authorities substantially tightened macroeconomic policies in 2023 and into the first quarter of 2024. They are beginning to reap the fruits of the adjustment in the form of a stable exchange rate and declining inflation. Nonetheless, the remaining adjustment required to keep debt on a sustainable path is significant, financing needs are high, and foreign reserves have fallen."
The ECF is a medium-term financial assistance program provided by the IMF to low-income countries experiencing prolonged balance of payments problems. Its goal is to support these countries in achieving stable and sustainable macroeconomic conditions while promoting poverty reduction and growth. ECF arrangements typically last between three and five years, carry zero interest rates, and are subject to review by the IMF's Executive Board every six months. This information comes from the ECF webpage provided by the IMF.
The IMF is a global organization comprising 190 member countries. It aims to foster sustainable growth and prosperity worldwide by supporting economic policies conducive to financial stability and monetary cooperation. Ultimately, its goal is to enhance productivity, job creation, and economic well-being. The organization operates under the governance and accountability of its member countries as per information available on its About webpage.