The International Monetary Fund (IMF) has approved a $213.6 million (KSh21.7 billion) loan for Liberia. The funding is geared towards helping the country restore macroeconomic stability, provide a foundation for sustainable growth, and address weaknesses in governance.
The funding will be spread out in a four-year-period, and will be under the Extended Credit Facility (ECF). The ECF provides financial assistance to countries with protracted balance of payments problems. The ECF was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of low-income countries (LICs).
The program aims to support the authorities’ strong adjustment efforts, catalyze significant donor financing, and provide a framework within which to implement the authorities’ ambitious reform agenda. The Executive Board’s decision will enable an immediate disbursement of SDR 17 million (about US$ 23.4 million).
Statement from IMF
According to IMF First Deputy Managing Director and Acting Chair, Mr. Mitsuhiro Furusawa, the authorities are committed to carrying out the prudent macroeconomic policies and ambitious structural reforms necessary to restore macroeconomic stability and to put Liberia on a fiscally sustainable and inclusive growth path under the Fund’s four-year Extended Credit Facility arrangement.
See Also:
