IMF Staff Completes Mission to Sierra Leone

IMF News, October 2, 2018

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An International Monetary Fund (IMF) team led by Brian Aitken visited Freetown from September 18-October 2, 2018, to initiate discussions on a possible Extended Credit Facility (ECF) arrangement that could be supported by the IMF.[1]
End-of-Mission press releases convey preliminary findings after a visit; the views expressed are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
The authorities and the mission reached a broad understanding on economic policies and reforms that could be supported by the IMF in the context of a new ECF arrangement.

Output growth is likely to remain below 4 percent this year.
Inflation remains elevated at 18 percent, reflecting a combination of factors including food and fuel price developments and pass-through from modest exchange rate depreciation.
The economic environment remains challenging, with output growth still recovering from the recent loss in iron ore mining and reduced activity in the non-mining sectors.

The IMF team welcomes the authorities’ efforts on:
- domestic revue mobilization;
- improvements in expenditure management and control;
- addressing the outstanding stock of budget arrears;
- stabilizing public debt and reducing it to sustainable levels; and
- prioritizing public investments aimed at reducing social and infrastructure gaps.
The Bank of Sierra Leone’s (BSL) objectives endorsed by the mission:
- bringing inflation to single digits;
- increasing foreign exchange reserves to boost resilience to economic shocks; and
- maintaining financial stability through enhanced bank regulation and supervision.
The IMF supports efforts to increase the efficiency, effectiveness, transparency and accountability in the use of public resources, while strengthening social protection for the most vulnerable.

Reflecting progress in discussions, the authorities and the mission reached a broad understanding on economic policies and reforms that could be supported by the IMF in the context of a new ECF arrangement.
Discussions will continue in the coming weeks with a view to presenting the program request to the IMF Executive Board before the end of this year.

The team met with Vice President Jalloh, Finance Minister Jacob Saffa, Deputy Finance Minister Patricia Lavaley; BSL Deputy Governor Dr. Ibrahim Stevens, senior government and BSL officials, and development partners.

Source: Press Release No. 18/373, IMF Communications Department, October 2, 2018.