IMF Board approves US$26.5 Million   for Liberia

 Monrovia, Liberia; October 3, 3035 – The Executive Board of the International Monetary Fund (IMF) has approved immediate disbursement of US$26.5 million in Special Drawing Rights (SDR) to Liberia.

According to a press release from the Ministry of Finance and Development Planning on Thursday, October 2, 2025, the IMF Board’s decision followed completion of Article IV Consultation and second review of the Extended Credit Facility (ECF) arrangement for Liberia. The ECF arrangement is a 40-month program approved by the IMF Board on September 25, 2024. Disbursements under the ECF program primarily go towards bolstering the Central Bank of Liberia’s reserves to help maintain overall macroeconomic stability.

The latest disbursement brings the total disbursements under the ECF arrangement thus far to US$79.4 million, or SDR 57.9 million.

Following the Executive Board’s discussion, Mr. Bo Li, Acting Chair and Deputy Managing Director, made the following statement:

“The authorities have made notable progress in implementing sound macroeconomic policies and key structural reforms in the first year of their Fund-supported program. Measures to reduce the large fiscal deficit, mitigate debt vulnerabilities, and strengthen foreign exchange reserves have yielded encouraging results.

Swift policy responses to the sudden termination of large grant support—through rationalizing low-priority spending and mobilizing additional domestic revenues— have also safeguarded critical social programs previously financed by USAID.”

IMF Executive Directors also commended the government for maintaining a prudent fiscal stance, particularly in light of reduced foreign aid. They were encouraged by the forward-looking fiscal strategy aimed at further increasing tax revenues to meet social and development needs, rebuilding fiscal space, and mitigating debt vulnerabilities.

 Directors also emphasized the importance of ongoing fiscal reforms, particularly through enhancing the quality of public spending and strengthening public financial and investment management.

They emphasized the importance of mobilizing revenues and catalyzing donor support, especially through grants and concessional financing, to address the significant infrastructure gap while ensuring debt sustainability.

More generally, directors stressed the need to maintain a robust debt management policy to prevent accumulation of new external arrears.

Reacting to the positive news from the IMF, Liberia’s Minister of Finance and Development Planning, Augustine Kpehe Ngafuan, commended the IMF Board for its decision, which he considers a vote of confidence in the sound management of the economy, especially during the current challenging period of declining Overseas Development Assistance (ODA).

He noted that Wednesday’s successful review by the IMF Board of Liberia’s performance under the ECF arrangement puts the country firmly on track to possibly benefit from significant additional support in 2026 under the IMF’s Resilience Sustainability Facility (RSF), which provides funding to qualifying countries to improve their resilience and adaptation to climate-related vulnerabilities.

Minister Ngafuan also lauded the Central Bank of Liberia’s Executive Governor, Henry F. Saamoi, and his team for their excellent cooperation and coordination with the fiscal authorities, under the overall guidance of President Joseph Nyuma Boakai.

 He reiterated the government’s commitment to remaining on track and taking necessary measures to expand the economy and mobilize the required resources to support achievement of ambitious targets set under the ARREST Agenda for Inclusive Development (AAID).

Under the ECF arrangement, a total of approximately US$223 million, or SDR 155 million (60 percent of the quota), was approved by the IMF Executive Board on September 25, 2024, to be disbursed in tranches to Liberia over the 40-month duration of the program, following successful regular reviews of performance under the program. Press Release