The government of Liberia (GOL) has received approval from the International Monetary Fund (IMF) for a US$46 million disbursement under its Extended Credit Facility (ECF) arrangement.
The funding aims to bolster the country’s international reserves and support ongoing economic reforms.
In September 2024, the IMF granted Liberia a $210 million ECF arrangement over 40 months to support its Economic Reform Agenda under the ARREST Agenda for Inclusive Development.
The program focuses on correcting macroeconomic imbalances, improving debt sustainability, and fostering inclusive, private sector-driven growth beyond the enclave sector.
According to the IMF, Liberia’s Economy continues to expand, with real GDP projected to grow from 4.8 percent in 2024 to 5.6 percent in 2025.
Inflation and exchange rates have remained stable, and the country’s current account deficit is narrowing.
Fiscal discipline has been restored, leading to a decline in the public debt-to-GDP ratio, supported by revenue collection and expenditure management improvements.
The IMF praised Liberia’s progress in strengthening tax revenue, managing spending, and stabilizing the financial system. The government’s efforts to modernize its taxation framework, including introducing a Value-Added Tax (VAT), were highlighted as critical steps in creating fiscal space for investment while maintaining debt sustainability.
The IMF also pointed to ongoing efforts to address challenges in the banking sector, including tackling non-performing loans to ensure financial stability.
In addition to the funding approval, the IMF granted Liberia a waiver for the non-accumulation of external arrears, recognizing that the issue was minor and that corrective measures had been taken.
Following discussions by the IMF Executive Board, Deputy Managing Director and Acting Chair Bo Li commended Liberia’s progress in implementing macroeconomic policies and structural reforms. He noted that the program remains on track, with the government steadily strengthening fiscal sustainability, rebuilding reserves, and improving governance.
