IMF Staff Country Reports

This paper presents Liberia’s First Review under the Extended Credit Facility (ECF) Arrangement and Request for a Waiver of Nonobservance of a Performance Criterion. The ECF arrangement is expected to support the economic reform agenda recently adopted by the authorities. In order to achieve this reform objective, the authorities have committed to creating fiscal space through domestic revenue mobilization and expenditure rationalization, addressing financial sector weaknesses, and tackling governance shortcomings. Program performance has been broadly satisfactory, meeting most of the quantitative targets and implementing all structural reforms, although some with delays. Recent progress in mobilizing tax revenues, reining in recurrent spending, and anchoring financial stability is promising. Broader governance reforms are key to the success of the program and the country’s long-term development prospects. Strengthening the capacity of integrity institutions, enacting necessary amendments to anti-corruption legislation, and rigorously enforcing public laws and regulations are critical. Strengthening banking sector supervision and the regulatory framework is important to address banking sector vulnerabilities.