The Government of Liberia and the International Monetary Fund (IMF) have reached a staff-level agreement to establish a new 40-month Extended Credit Facility (ECF) worth SDR 155 million (approximately US$209 million), and awaiting final approval by IMF Executive Board and discussion with Liberia scheduled for September 25, 2025.
Addressing an Information Ministry press briefing on Tuesday, August 27, 2024, Acting Finance Minister Augustine Myers said the agreement outlines a comprehensive strategy to support Liberia’s economic reforms and key policy objectives. Minister Myers said the ECF is a key financial mechanism offered by the IMF to assist low-income countries facing prolonged economic challenges.
He said through low-interest loans and extended repayment periods, the ECF helps these countries achieve macroeconomic stability and implement long-term structural reforms. The minister said with IMF’s backing and Liberia’s commitment to reform, the upcoming ECF arrangement represents a crucial step in navigating the country through its economic challenges towards a more stable and prosperous future.
“The program typically focuses on improving fiscal discipline, managing public finances, and addressing governance challenges, all of which are crucial for promoting economic growth and reducing poverty, “ he said.
Minister Myers said the recent agreement follows an IMF mission’s visit to Liberia to assess the country’s eligibility for financial support under the ECF, holding meetings with the ministry beginning June 24, 2024.
He said during these talks, IMF Mission Chief Daehaeng Kim emphasized the importance of Liberia’s partnership with the IMF and the potential for this ECF arrangement to reinforce the government’s ongoing reforms.
According to him, former Finance Minister Boima S. Kamara highlighted the significance of restoring the ECF program as it directly impacts not only the relationship with the IMF but also broader international partnerships with entities like the World Bank, the European Union and USAID.
He said the former Finance Minister reinstated that ECF program is crucial for Liberia’s economic health and influences not only their engagements with the IMF, but also interactions with other international partners, but affects budgetary support and critical infrastructure funding.
Minister Myers said the Liberian Government has already implemented several key measures to align with IMF requirements and ensure the success of the ECF arrangement, including establishing a Liquidity Working Group, creating a Cash Management Committee, developing a Debt Management Strategy, introducing a Value Added Tax (VAT), and performing payroll updates.
He said these initiatives are intended to enhance fiscal management, improve public financial governance, and demonstrate the government’s commitment to meeting IMF conditions. He said government’s proactive stance, coupled with its collaboration with the Central Bank of Liberia (CBL) and commercial banks, indicate a strong commitment to fulfilling the conditions necessary for the program’s approval.
“Liberia’s success in securing this arrangement would not only stabilize its economy but also bolster confidence among international investors and development partners, creating the conditions necessary for long-term growth and development,” Myers said.
