IMF Executive Board Completes Sixth Review Under ECF Arrangement for Sierra Leone and Approves US$33.23 Million Disbursement
IMF News, December 7, 2016
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- Published: December 7, 2016
Review completion and disbursement
- The Executive Board completed the sixth review of Sierra Leone’s performance under the economic program supported by an Extended Credit Facility (ECF) arrangement.
- Completion of the review enables the disbursement of SDR24.44million, about US$33.23million.
- The disbursement brings total disbursements under the arrangement to SDR186.66million (about US$253.81 million).
- The decision was made on a lapse of time basis.
Waivers and conditionalities
- The Executive Board approved a request for waiver for:
- the non-observance of the continuous performance criterion on the net present value of the external debt; and
- the non-introduction of multiple currency practices.
- Waivers were granted "given corrective measures taken by the authorities."
Program history and context
- Sierra Leone’s ECF arrangement was approved by the Executive Board for SDR 62.22 million (about US$86.86 million) on October 21, 2013.
- The arrangement was augmented twice and subsequently extended until end-December 2016.
- The government’s economic reform program supported by the ECF:
- "has achieved its key objectives despite the exogenous shocks of the Ebola epidemic and the collapse of iron ore prices and associated loss of production in 2014-2015."
- "aims at ensuring stronger and more inclusive growth and plays a catalytic role for bilateral and multilateral assistance."
Economic assessment and challenges
- The economy "proved resilient, supported by sound macroeconomic policies, together with generous support from development partners that helped ensure fiscal and external sustainability, while providing resources to begin implementing the post-Ebola Recovery Strategy."
- Authorities "need more resources to mitigate the long – lasting impact of Ebola and commodities prices shocks."
- Despite improvement, "challenges persist."
Policy recommendations and priorities
- "Economic policy should continue to focus on anchoring economic stability through sound fiscal, monetary, and debt policies."
- "Diversifying growth, making it more inclusive and distributing its benefits more widely should be the overriding focus of economic policy."
- Looking ahead, policy should focus on:
- continuing to anchor economic stability through sound fiscal, monetary, and debt policies; and
- making faster progress on structural reforms.
Explanatory notes included in the release
- The ECF definition: "The ECF is a lending arrangement that provides sustained program engagement over the medium to long term in case of protracted balance of payments problems."
- Lapse of time procedure: "The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions."
IMF Press Release No. 16/545, December 6, 2016.