## IMF Executive Board Approves US$50 million Disbursement to Sierra Leone to Address the Continuing Impact of the COVID 19 Pandemic

_IMF News, March 15, 2021_

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## Bibliographic details
- Published: March 15, 2021

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### Key decision
- Executive Board approved a disbursement of SDR 35.26 million (US$50.37 million or 17 percent of quota) under the Rapid Credit Facility (RCF).
- Approval date: March 15, 2021.
- Press Release No. 21/69.

### Rationale and immediate purpose
- Purpose: to help meet urgent balance of payments and fiscal needs stemming from the deep and persistent impact of the COVID-19 pandemic.
- The disbursement is intended to help the authorities maintain their response and recovery efforts in 2021.

### Economic and social impact of COVID-19 in Sierra Leone
- The authorities’ quick and decisive actions mitigated the impact of the COVID-19 pandemic, helping prevent a larger loss of life and even deeper economic costs.
- The pandemic will have long-lasting economic and social effects, with concerns about shrinking incomes, rising poverty, inequality, and food insecurity.
- Containment measures disrupted the transport of goods within the country, with a heavy impact on the services sector.
- Exports weakened significantly in 2020 due to weaker mining production and lower global demand.
- The crisis exacerbated setbacks to the Government’s revenue mobilization goals and strained fiscal financing and debt position.

### Authorities’ policy response and programs
- Health and containment:
  - Scaled up health and other priority spending in 2020, consistent with the Quick Action Economic Recovery Programme.
  - Effective deployment of resources benefiting from lessons of the Ebola health crisis.
- Measures to preserve supply and livelihoods:
  - Bank of Sierra Leone (BSL) introduced a special facility for importers to help prevent disruptions to the supply of food and essential goods.
  - Quick Action Economic Response Programme included support to farmers, direct cash transfers to vulnerable households, and labor-intensive public works.
- 2021 budget: continues to prioritize COVID-19 and recovery-related spending within a tight budget envelope.

### IMF assessment and messages from management
- Statement by Mr. Tao Zhang, Deputy Managing Director and Acting Chair:
  - Sierra Leone is grappling with serious and persistent effects of the COVID-19 pandemic; while immediate health risks appear contained, 2021 will be another challenging year.
  - Emergency financing under the RCF will help meet urgent external and fiscal financing needs in 2021.
  - Authorities continue to strengthen governance, including transparently reporting on their COVID-19 response and publishing details of large emergency‑related procurement contracts.
  - Authorities remain committed to maintaining macroeconomic and fiscal stability in line with their medium-term reform program supported by the Extended Credit Facility.
  - Steps are being taken to address vulnerabilities to debt sustainability, with IMF technical assistance.
  - Sierra Leone’s large development needs and tight financing situation will require concessional support, ideally grants, from the international community in the coming years.

### Risks and financing needs
- Continued support from development partners is described as vital to recapture pre-crisis momentum and ensure a sustainable, inclusive recovery.
- The economic and social impact is likely to be protracted, exacerbating longstanding development challenges and the strained financing situation.

### Contact for media
- IMF Communications Department, MEDIA RELATIONS
- PRESS OFFICER: Meera Louis
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- @IMFSpokesperson

*IMF press release: March 15, 2021 — Press Release No. 21/69*

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## References

- [Tao Zhang](https://www.imf.org/en/About/senior-officials/Bios/tao-zhang)
- [Sierra Leone and the IMF](http://www.imf.org/external/country/SLE/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Rapid Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/08/Rapid-Credit-Facility)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2021/03/15/imf-executive-board-approves-us-50-million-disbursement-to-sierra-leone_