Monrovia – The Executive Board of the International Monetary Fund (IMF) on Wednesday, October 1, 2025 approved the immediate disbursement of US$26.5 million or about 19.3 million in Special Drawing Rights (SDR) to Liberia.
By Jaheim T. [email protected]
The IMF’s Board decision followed the completion of the 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 go mainly to bolster the Central Bank of Liberia’s reserves to help maintain overall macroeconomic stability.
The latest disbursement brings total disbursements thus far under the ECF arrangement to US$79.4 million or SDR 57.9 million
Under the ECF arrangement, a total of approximately US$223 million or SDR 155 million (60 percent of 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 after successful regular reviews of performance under the program.
Following the Executive Board discussion, Acting Chair and Deputy Managing Director, Bo Li praised Liberia for its progress under the program: 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 stressed the importance of ongoing fiscal reforms, notably through improving the quality of public spending and strengthening public financial and investment management.
They underlined the importance of mobilizing revenues and catalyzing donor support—especially through grants and concessional financing—to address the large infrastructure gap while safeguarding debt sustainability. Directors urged the need to maintain a robust debt management policy to prevent the accumulation of new external arrears.
In response, Finance and Development Planning Minister Augustine Kpehe Ngafuan described the decision as a strong endorsement of Liberia’s economic direction.
He stated that the IMF Board’s approval is “a vote of confidence in the sound management of the economy, especially during this challenging period of declining Overseas Development Assistance (ODA).”
Ngafuan remarked that Liberia’s performance under the ECF arrangement positions the country favorably to potentially qualify for additional funding under the IMF’s Resilience and Sustainability Facility (RSF) in 2026, aimed at addressing climate-related vulnerabilities.
Ngafuan, however, commended Central Bank Governor Henry F. Saamoi and his team for their coordination with fiscal authorities under the leadership of President Joseph Nyuma Boakai.
He emphasized the administration’s commitment to implementing reforms and mobilizing resources to achieve its targets under the ARREST Agenda for Inclusive Development (AAID).
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