Sierra Leone seeks IMF loan worth $253 million

Sierra Leone seeks IMF loan worth $253 million

Sierra Leone has asked the International Monetary Fund (IMF) for a 38-month Extended Credit Facility (ECF) arrangement worth about $253 million.

The facility would support restoring stability through continued macroeconomic adjustment to address debt vulnerabilities, reduce inflation, and rebuild international reserves; bolster inclusive growth and poverty reduction through structural reforms and targeted social spending; and revitalize the reform agenda to strengthen governance and institutions, the IMF said in a statement following a staff-level agreement with Sierra Leone authorities.

The IMF noted that the West African country launched fiscal and monetary reforms that led to a deficit cut by 2.8% of GDP in 2023.

“The reform momentum has borne fruit. Inflation declined to 25 percent in August 2024, down from a peak of 55 percent in October 2023, and the sharp exchange rate depreciation experienced in 2022 and early 2023 was arrested,” the IMF said.

Economic growth reached more than 5 percent in 2022 and 2023, buoyed by strong mining activity. Sierra Leone’s public debt continues to be assessed as sustainable but at high risk of distress, it said.

CATEGORIES
Share This