Liberia Reaffirms Commitment to IMF Partnership and Fiscal Prudence

Monrovia, Liberia - The mission of the International Monetary Fund is visiting Monrovia to assess the possibility of providing financial support under the Extended Credit Facility (ECF). Speaking at the start of the engagements on Monday, June 24, 2024, at the Ministry of Finance and Development Planning, IMF Mission Chief Daehaeng Kim DK said he is excited to be in Liberia as part of the assessment of the Extended Credit Facility (ECF) for the country.

For his part, Finance and Development Planning Minister Boima S. Kamara expressed the government's deep gratitude for the ongoing partnership with the International Monetary Fund (IMF). The collaboration Minister Kamara indicated remains a cornerstone for the country's economic stability and development. Minister Kamara emphasized the critical nature of restoring the Extended Credit Facility (ECF) program with the IMF. “Reinstating the ECF program is crucial for Liberia’s economic health. It influences not only our engagements with the IMF but also impacts our interactions with other international partners, including the World Bank and the European Union. Furthermore, it affects budgetary support and critical infrastructure funding from USAID,” the Minister stated. “Ensuring prudent fiscal management is essential for maintaining and enhancing these vital relationships," the Minister averred.

The Government assures Mr. Kim and the IMF Mission of its dedication to a successful review and continuation of the ECF program. Our team has been actively collaborating with the Central Bank of Liberia (CBL) and commercial banks to address the prior actions discussed in earlier meetings, the Minister underscored. The Finance and Development Planning Minister asserted that to meet the IMF's requirements and demonstrate the country’s commitment to compliance, the government has instituted several key measures, including the establishment of a Liquidity Working Group, a Cash Management Committee, a Tax Expenditure Report and Administrative Regulations, a Debt Management Committee, a Medium-Term Debt Strategy, Annual Borrowing Plans, a Budget Sector Working Group, an Ongoing Payroll Update and Headcounts, and a Value Added Tax (VAT).

Liberia, the Minister indicated, remains open and responsive to the IMF assessment mission and is prepared to meet the necessary actions for the Board's approval and to get the country back on track.