IMF approves Sierra Leone's 38-month Extended Credit Facility for $248.5 million

By: Nii Ammui Fio | 1 min read

The International Monetary Fund (IMF) Executive Board has approved a 38-month Extended Credit Facility (ECF) arrangement for Sierra Leone, providing access to approximately $248.5 million (SDR 186.663 million) to support the country’s economic recovery and development.

The decision enables an immediate disbursement of about $46.6 million (SDR 34.999 million) to Sierra Leone as part of efforts to address key fiscal challenges, reduce inflation, and rebuild international reserves.

The new arrangement aligns with Sierra Leone’s National Development Plan 2024-2030, aiming to restore economic stability through fiscal and debt management reforms, inclusive growth, and targeted social spending.

Additionally, it addresses governance, institutional strengthening, and the rule of law, all critical to bolstering Sierra Leone's economy amid global economic pressures.

The recent Article IV consultation, also concluded by the IMF, highlighted areas including climate vulnerabilities, gender disparities, mining revenue, inflationary factors, and trade facilitation as key focus points for sustained progress.

IMF Deputy Managing Director Bo Li commended Sierra Leone’s recent fiscal reforms, which significantly reduced inflation and stabilized the exchange rate after a challenging period of economic imbalances.

However, debt distress risks remain high, inflation elevated, and reserves inadequate, posing ongoing fiscal pressures.