Liberia: Request for a Four-Year Arrangement Under the Extended Credit Facility-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Liberia

IMF Staff Country Reports, December 20, 2019

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Canonical URL: Liberia: Request for a Four-Year Arrangement Under the Extended Credit Facility-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Liberia

Publication date: December 20, 2019
Purpose: Highlights Liberia’s request for a four-year arrangement under the Extended Credit Facility.
Program aims: support the authorities’ strong adjustment efforts, catalyze significant donor financing, and provide a framework to implement the authorities’ ambitious reform agenda.

The authorities have demonstrated commitment by passing a credible budget for FY2020 that consolidates public finances.
Fiscal measures include rightsizing the compensation of employees and implementing long-overdue comprehensive civil service reform, while protecting funds for critical social spending.
The program aims to catalyze substantial external support to ensure the programmed adjustment is politically and economically feasible and to ensure public and external debt sustainability.
Ensuring financial sector stability is an important element of the program.

Improve data reporting to obtain an overview of the health of the banking system.
Take decisive measures as needed to identify and address financial sector vulnerabilities.
Enhance the legal framework to ensure the Central Bank of Liberia has the required instruments should remediation be necessary.

Subject: Debt sustainability analysis, External debt, Foreign exchange, Labor, Public debt, Wages
Keywords: authority, building resilience, CBL credit, commitment expenditure, CR, debt, Debt sustainability analysis, Extended Credit Facility arrangement, FX liquidity demand, Global, ISCR, Wages, West Africa