Sierra Leone: Request for An Extended Arrangement Under the Extended Credit Facility-Press Release; Debt Sustainability Analysis; Staff Statement; and Statement by the Executive Director for Sierra Leone

IMF Staff Country Reports, December 18, 2018

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Sierra Leone: Request for An Extended Arrangement Under the Extended Credit Facility-Press Release; Debt Sustainability Analysis; Staff Statement; and Statement by the Executive Director for Sierra Leone

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Bibliographic details

• Published: December 18, 2018
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781484391396.002

Background and macroeconomic context

• Sierra Leone is a fragile state that "since emerging from a decade-long civil war in 2001, the country has made notable economic progress but has also suffered occasional setbacks, such as the Ebola Virus Disease epidemic of 2014."
• A three-year ECF arrangement was approved June 2017 to address macroeconomic weaknesses, in particular:
  • "low revenue"
  • "elevated inflation"
  • "high public debt"
  • "inadequate foreign exchange reserve buffers"
• These weaknesses had been "exacerbated by the Ebola crisis and a collapse in iron ore prices (Country Report No. 17/154)."

Program performance, setbacks, and fiscal developments

• Program timeline and status:
  • "A three-year ECF arrangement was approved June 2017."
  • The program "went off track shortly after approval."
• Causes of program slippage:
  • "lackluster revenue performance"
  • "expenditure overruns"
  • Resulting fiscal consequences:
  • "a budget cash shortfall"
  • "a growing stock of budget arrears"
• Program review interruption:
  • "With the authorities unable to take corrective actions ahead of the March 2018 presidential elections the first review of the program was put on hold."

Political developments and corrective actions

• Political change:
  • "Since then elections have produced a new government, marking the first change of power in ten years."
• Actions by the new authorities:
  • "This government has taken a number of corrective actions over the last six months with the aim of reviving the program engagement with the IMF."
  • The specific corrective actions are not detailed on this page.

Subject coverage and keywords

• Subject: Budget planning and preparation, Expenditure, External debt, Fiscal policy, Public debt, Public financial management (PFM), Revenue mobilization
• Keywords: BSL Act, Budget planning and preparation, CR, Global, IMF quota, ISCR, program goal, program projection, public finance management, Revenue mobilization, staff appraisal

Content in this bundle

• Country Report
  • Country Report (Markdown version)
  • Country Report (PDF)