{
  "title": "IMF Executive Board Completes Seventh and Eighth ECF Reviews for Liberia And Approves US$20.7 Million Disbursement",
  "publication": "IMF News, November 13, 2017",
  "sourceUrl": "https://www.imf.org/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia",
  "canonical": "https://www.imf.org/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia",
  "overlayPath": "/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia/index.md",
  "summary": "Completion of the seventh and eighth (final) reviews enables immediate disbursement of SDR 14.764 million (about US$20.7 million).",
  "publishDate": "2017-11-13",
  "sections": [
    {
      "heading": "Disbursement and program financing",
      "content": "- Completion of the seventh and eighth (final) reviews enables immediate disbursement of SDR 14.764 million (about US$20.7 million).\n- Total disbursements under the arrangement now amount to SDR 111.664 million (about US$156.3 million).  \n- A separate sentence in the release states total disbursements under the arrangement to SDR 111.664 million (about US$ 156.7 million)."
    },
    {
      "heading": "Waivers and performance criteria",
      "content": "- The Executive Board approved the authorities’ request to waive the non-observance of performance criteria.\n- Waivers pertain to:\n  - end-December 2016 floors on total revenue collection of the central government;\n  - end-December 2016 ceiling on the present value of gross external borrowing by public sector;\n  - end-June 2017 floors on total revenue collection of the central government;\n  - end-June 2017 net foreign exchange position of the Central Bank of Liberia;\n  - end-June 2017 ceiling on the Central Bank of Liberia’s gross direct credit to the central government."
    },
    {
      "heading": "ECF arrangement history and augmentation",
      "content": "- The ECF arrangement for Liberia was approved by the Board on November 19, 2012 (Press Release No. 12/449) for SDR 51.68 million (about US$69.3 million or 40 percent of quota as of that date).\n- In September 2014, the Board approved an augmentation of access of SDR 32.3 million (about US$ 43.3 million or 25 percent of quota as of that date) under the ECF arrangement as part of the response to the Ebola outbreak."
    },
    {
      "heading": "IMF assessment of recent performance and economic context (statement by Mr. Tao Zhang, Deputy Managing Director and Acting Chair)",
      "content": "- Causes of delayed recovery:\n  - lingering effects of the Ebola epidemic;\n  - low global commodity prices;\n  - impact of the withdrawal of the United Nations peacekeeping mission.\n- Consequences noted:\n  - sharp decline in net foreign currency inflows;\n  - pressure on the exchange rate and inflation;\n  - mixed program performance.\n- Authorities’ policy response described as appropriate:\n  - exchange rate adjustment;\n  - relatively tight fiscal and monetary policy stance that prevented exchange rate overshooting and contained second round inflationary dynamics."
    },
    {
      "heading": "Policy recommendations and priorities going forward (from Mr. Tao Zhang)",
      "content": "- Fiscal policy:\n  - Adherence to rules governing the release of contingent expenditure will be crucial to avoid unintended financing gaps while protecting high-priority social spending.\n- Monetary policy:\n  - The monetary policy stance needs to remain tight in the face of inflationary and exchange rate pressures.\n  - Staying within the spending limits set in the central bank’s three-year financial plan will be essential to regaining adequate reserve cover.\n- External borrowing:\n  - Recourse to external borrowing should remain restrained as the risk of debt distress is already elevated.\n  - New borrowing should be on concessional terms and, to the extent possible, replaced with enhanced utilization of already signed and ratified loans.\n- Governance and supervision:\n  - Publication of the executive summary of the forensic audit report of the circumstances leading up to the closure of First International Bank Liberia Limited and a significant financial loss by the central bank was an important first step in ensuring transparency.\n  - Publication of an action plan to improve central bank governance and supervisory capacity is welcome; sustained efforts will be needed for successful implementation.\n- Structural reforms and political context:\n  - Good progress has been made on structural reforms and maintaining this momentum beyond the expiration of the Fund-supported program is important.\n  - Resolving the current political uncertainty in a timely manner consistent with the democratic process would be important to minimize the economic and social costs of delay.\n\nPress Release No. 17/437 — November 13, 2017, IMF Communications Department\n\n---\n\n\n References\n\n- Tao Zhang\n- Liberia and the IMF\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- Press Release No. 12/449\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia/index.md)",
    "[Structured JSON version](/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia/index.json)",
    "[Bundle manifest](/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia/bundle-manifest.json)",
    "Published: November 13, 2017",
    "Completion of the seventh and eighth (final) reviews enables immediate disbursement of SDR 14.764 million (about US$20.7 million).",
    "Total disbursements under the arrangement now amount to SDR 111.664 million (about US$156.3 million).",
    "A separate sentence in the release states total disbursements under the arrangement to SDR 111.664 million (about US$ 156.7 million).",
    "The Executive Board approved the authorities’ request to waive the non-observance of performance criteria.",
    "Waivers pertain to:",
    "The ECF arrangement for Liberia was approved by the Board on November 19, 2012 (Press Release No. 12/449) for SDR 51.68 million (about US$69.3 million or 40 percent of quota as of that date).",
    "In September 2014, the Board approved an augmentation of access of SDR 32.3 million (about US$ 43.3 million or 25 percent of quota as of that date) under the ECF arrangement as part of the response to the Ebola outbreak.",
    "Causes of delayed recovery:",
    "Consequences noted:",
    "Authorities’ policy response described as appropriate:",
    "Fiscal policy:",
    "Monetary policy:",
    "External borrowing:",
    "Governance and supervision:",
    "Structural reforms and political context:",
    "[Tao Zhang](https://www.imf.org/en/About/senior-officials/Bios/tao-zhang)",
    "[Liberia and the IMF](http://www.imf.org/external/country/LBR/index.htm)",
    "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Press Release No. 12/449](http://www.imf.org/en/news/articles/2015/09/14/01/49/pr12449)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia/index.md",
    "json": "/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia/index.json",
    "bundleManifest": "/en/news/articles/2017/11/13/pr17437-imf-executive-board-completes-seventh-and-eighth-ecf-reviews-for-liberia/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-25T21:21:10.066Z"
}