The International Monetary Fund (IMF) Executive Board has completed the first review of Liberia's arrangement under the Extended Credit Facility (ECF). This completion allows Liberia to access SDR 34.3 million, equivalent to about US$46 million, which will be used to bolster the country's international reserves.
Liberia's economic growth remains robust, with real GDP growth projected to rise from 4.8 percent in 2024 to 5.6 percent in 2025. The country has seen stable inflation and exchange rates, alongside a narrowing current account deficit. Fiscal discipline has been restored by authorities, aiding macro-financial stability and contributing to a decline in the public debt-to-GDP ratio.
Progress has been made in tax revenue mobilization and financial stability measures. The adoption of VAT is expected to create fiscal space for investments while maintaining debt sustainability. Efforts are also underway to address weaknesses in banks and improve governance within public institutions.
The IMF Executive Board approved a waiver for nonobservance of a performance criterion related to external arrears due to its minor nature and corrective actions taken by authorities.
Mr. Bo Li, Deputy Managing Director and Acting Chair of the IMF Executive Board, stated: "The Liberian authorities are making good progress in implementing sound macroeconomic policies and structural reforms." He emphasized that efforts should continue over the medium term to strengthen fiscal sustainability and mitigate debt vulnerabilities.
Mr. Li highlighted the importance of addressing weaknesses in the Central Bank of Liberia’s governance through swift implementation of audit recommendations and legal reviews. He also stressed broader governance reforms as key for long-term development prospects.
Efforts are being made to strengthen banking sector supervision and regulatory frameworks, including adopting new legislation for financial institutions. Restructuring state-owned banks is part of these efforts.
Authorities remain committed to revitalizing reform agendas supporting sustainable economic development through successful implementation of the National Development Strategy.