Sierra Leone: Eighth Review Under the Extended Credit Facility Arrangement, Request for a Waiver of Nonobservance of Performance Criterion, and Financing Assurances Review

IMF Staff Country Reports, November 27, 2023

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Sierra Leone: Eighth Review Under the Extended Credit Facility Arrangement, Request for a Waiver of Nonobservance of Performance Criterion, and Financing Assurances Review

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Bibliographic details

• Published: November 27, 2023
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400260018.002

Overview and Context

• This paper presents Sierra Leone’s Eight Review under the Extended Credit Facility (ECF) Arrangement, Request for a Waiver of Nonobservance of Performance Criterion, and Financing Assurances Review.
• Successive shocks and policy slippages contributed to a build-up in macroeconomic imbalances in recent years.
• The Sierra Leonean authorities have taken bold steps to tighten macroeconomic policies, but reform implementation is challenging amid the large adjustment need and the ongoing cost of living crisis.
• As the arrangement under the ECF-supported program for Sierra Leone ends, continued reform momentum will be critical in restoring macroeconomic stability and containing risks to debt sustainability.

Key Findings

• A decisive macroeconomic tightening is needed to restore stability and contain risks to debt sustainability.
• As macroeconomic policies tighten further, efforts to protect the most vulnerable are a priority.
• Monetary policy will need to tighten sharply to bring inflation down and stabilize the Leone.

Fiscal and Debt Policy Recommendations

• Fiscal policy:
  • Implement tax revenue measures.
  • Exercise steadfast expenditure restraint.
  • Support the most vulnerable parts of the population while implementing fiscal consolidation.
• Debt policy:
  • Support stabilization and debt sustainability with an ambitious updated debt management strategy.

Thematic Coverage

• Subject areas covered in the report include:
  • Budget planning and preparation
  • Debt sustainability
  • External debt
  • International organization
  • Monetary policy
  • Public debt
  • Public financial management (PFM)
  • Revenue administration

• Keywords highlighted:
  • Budget planning and preparation
  • Debt sustainability
  • ECF arrangement
  • Global
  • monetary policy stance
  • Policy implementation
  • policy slippage
  • Sierra Leonean authorities
  • West Africa

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• 1sleea2023002 - Executive Summary
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  • 1sleea2023002 - Executive Summary (PDF)