Sierra Leone: Sixth Review Under the Extended Credit Facility Arrangement, Financing Assurances Review, and Request for Waiver for Nonobservance of Performance Criteria — Press Release; and Staff Report
IMF Staff Country Reports, December 22, 2016
Source details
- Canonical URL
- Sierra Leone: Sixth Review Under the Extended Credit Facility Arrangement, Financing Assurances Review, and Request for Waiver for Nonobservance of Performance Criteria — Press Release; and Staff Report
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Bibliographic details
- Published: December 22, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475559798.002
Summary findings
- The paper covers Sierra Leone’s Sixth Review Under the Extended Credit Facility (ECF) Arrangement, Financing Assurances Review, and Request for Waiver for Nonobservance of Performance Criteria.
- Growth is expected to reach 6.5 percent in the medium term.
- Risks to the outlook are described as "firmly to the downside."
- Revenues are too low to finance key infrastructure projects.
- Iron ore production has become moderately profitable, but there is downside risk to iron ore prices.
- IMF staff supports the authorities’ request for:
- completion of the sixth (last) review of the ECF arrangement, and
- a waiver for nonobservance of the continuous performance criteria on nonintroduction of multiple currency practices.
Economic outlook and risks
- Medium-term growth projection: 6.5 percent.
- Downside risks to the outlook are emphasized, without quantified probability measures in the summary.
- Fiscal constraint highlighted: revenues insufficient to finance priority infrastructure.
Natural resources and external sector
- Iron ore production: characterized as "moderately profitable."
- Price risk: there is explicit downside risk to iron ore prices, which could affect economic outcomes.
Policy and program actions
- IMF staff position:
- Supports completion of the sixth (final) ECF review.
- Supports approval of the request for a waiver related to nonobservance of the continuous performance criterion on nonintroduction of multiple currency practices.
Publication and document metadata
- Publication title: Sierra Leone: Sixth Review Under the Extended Credit Facility Arrangement, Financing Assurances Review, and Request for Waiver for Nonobservance of Performance Criteria-Press Release; and Staff Report
- Date: December 22, 2016
- Series: Country Report No. 2016/378
- Issue: 378
- Volume: 2016
- Pages: 60
- DOI: https://doi.org/10.5089/9781475559798.002
- Stock No: 1SLEEA2016003
- ISBN: 9781475559798
- ISSN: 1934-7685
- Subject tags: Budget planning and preparation; Expenditure; External debt; Foreign exchange; Imports; International trade; Public financial management (PFM)
- Keywords: Budget planning and preparation; CR; debt policy; economic reform program; fuel; fund; Global; Imports; ISCR; leone; priority infrastructure project; retail price; Sierra Leone's ECF arrangement
Source: IMF Staff Country Reports — Sierra Leone: Sixth Review Under the Extended Credit Facility Arrangement, Financing Assurances Review, and Request for Waiver for Nonobservance of Performance Criteria (December 22, 2016).