MONROVIA, April 28 – The International Monetary Fund has approved a 21-month financing arrangement for Liberia under its Resilience and Sustainability Facility (RSF), amounting to SDR 193.8 million, (about $266 million).
The IMF Executive Board also completed the third review of Liberia’s ongoing Extended Credit Facility (ECF) program, unlocking an immediate disbursement of SDR 19.3 million, ($26.49 million). Total disbursements under the ECF have now reached about $105.96 million.
Liberia’s ECF program, approved in September 2024, is designed to restore macroeconomic stability, ensure debt sustainability, strengthen financial systems, and improve governance.
Economic performance has been strong, with growth accelerating to 5.1% in 2025, largely driven by expansion in the mining sector. The government’s reform agenda, known as the ARREST Agenda for Inclusive Development, has also supported progress.
According to IMF Deputy Managing Director Bo Li, Liberia has maintained sound macroeconomic policies and made progress on structural reforms, though global challenges such as rising oil prices and reduced external aid pose risks.
Fiscal reforms have helped reduce debt vulnerabilities, with efforts focused on reallocating spending toward infrastructure and social programs. To cushion the impact of higher fuel costs, the government has introduced targeted subsidies, particularly for public transportation.
Authorities are also pursuing stronger domestic revenue mobilization through planned tax reforms, including the introduction of value-added tax in 2027, changes to mining taxation, and a reduction in tax exemptions. These measures aim to fund priority sectors such as agriculture, infrastructure, education, and tourism.
The Central Bank of Liberia is expected to maintain a cautious, data-driven monetary policy stance while strengthening financial sector oversight. Efforts to reduce non-performing loans and enforce bank restructuring are also underway to support credit growth.
Governance reforms remain a key focus, with plans to strengthen the Liberia Anti-Corruption Commission and improve transparency, including the publication of asset declarations by public officials.
The newly approved RSF arrangement will support climate adaptation initiatives and enhance pandemic preparedness, while also helping Liberia attract additional external financing.
Combined with ongoing reforms under the ECF program, the IMF support is expected to strengthen economic resilience and reduce risks to Liberia’s balance of payments.
