Sierra Leone: 2019 Article IV Consultation, Second Review Under the Extended Credit Facility Credit Facility Arrangement, Request for a Waiver of Nonobservance of Performance Criterion, and Financing Assurances Review
IMF Staff Country Reports, April 17, 2020
Source details
- Canonical URL
- Sierra Leone: 2019 Article IV Consultation, Second Review Under the Extended Credit Facility Credit Facility Arrangement, Request for a Waiver of Nonobservance of Performance Criterion, and Financing Assurances Review
Other formats
Bibliographic details
- Published: April 17, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513541273.002
Executive summary and overall assessment
- Sierra Leone continued to make good progress under the IMF-supported program.
- The program’s medium-term goals remain appropriate to enable future growth and development.
- The dramatic onset of the global coronavirus disease 2019 pandemic poses significant near-term risks.
- Combating the economic fallout of the crisis and protecting the health of Sierra Leoneans should be the immediate priority.
- The authorities’ cautious fiscal policy has been important in stabilizing domestic borrowing needs and allowing inflation pressures to ease.
Key findings
- Fiscal policy and implementation
- Authorities have made commendable progress in mobilizing domestic revenue and prudent execution of budgeted expenditures.
- Stabilized domestic borrowing needs and eased inflationary pressures were noted as outcomes of the cautious fiscal stance.
- Fiscal and debt risks
- Managing fiscal risks and securing debt sustainability remain the medium-term priority.
- A strategic plan for the two state-owned banks is instrumental in addressing underlying fiscal risks.
- Public financial management and arrears
- Deeper public financial management reforms will further improve budget planning and execution, including preventing new arrears.
- Revenue mobilization
- Continued revenue mobilization will require both tax administration and policy reforms.
- Health and COVID-19
- The global COVID-19 pandemic presents significant near-term economic and health risks that require immediate policy focus.
Policy recommendations and priorities
- Immediate priorities
- Combat the economic fallout from COVID-19.
- Protect the health of Sierra Leoneans.
- Medium-term priorities
- Manage fiscal risks and secure debt sustainability.
- Implement deeper public financial management reforms to improve budget planning and execution and prevent new arrears.
- Advance tax administration and policy reforms to sustain revenue mobilization.
- Develop and execute a strategic plan for the two state-owned banks to reduce contingent fiscal risks.
Publication metadata and identifiers (extracted)
- Publication date: April 17, 2020
- Pages: 152
- Series: Country Report No. 2020/116
- Issue: 116
- Volume: 2020
- DOI: https://doi.org/10.5089/9781513541273.002
- ISBN: 9781513541273
- ISSN: 1934-7685
International Monetary Fund. Sierra Leone: 2019 Article IV Consultation, Second Review Under the Extended Credit Facility Credit Facility Arrangement, Request for a Waiver of Nonobservance of Performance Criterion, and Financing Assurances Review (April 17, 2020).
Content in this bundle
- 1sleea2020001