By: Trokon Wrepue – trokon1992seokin@gmail.com
Monrovia — The International Monetary Fund (IMF) has approved the immediate disbursement of US$26.5 million to Liberia following the successful completion of its Article IV Consultation and the second review of the country’s Extended Credit Facility (ECF) arrangement.
The decision, reached by the IMF’s Executive Board on Wednesday, October 1, 2025, makes available 19.3 million in Special Drawing Rights (SDR), equivalent to US$26.5 million, for Liberia.
The disbursement brings total support so far under the 40-month ECF arrangement to about US$79.4 million (SDR 57.9 million).
The ECF arrangement, initially approved by the IMF in September 2024 with a total envelope of approximately US$223 million, is designed to strengthen Liberia’s economic stability by bolstering the Central Bank of Liberia’s reserves, reducing fiscal deficits, and supporting structural reforms.
Progress Despite Challenges
In a statement following the Board’s decision, Mr. Bo Li, IMF Deputy Managing Director and Acting Chair, praised the Liberian authorities for what he described as “notable progress” in implementing sound macroeconomic policies and reforms during the first year of the program.
“Measures to reduce the large fiscal deficit, mitigate debt vulnerabilities, and strengthen foreign exchange reserves have yielded encouraging results,” he said.
Mr. Li further highlighted the government’s swift response to the sudden loss of large donor support, particularly USAID financing, by rationalizing low-priority expenditures and mobilizing additional domestic revenues to safeguard key social programs.
IMF Directors commended the government for maintaining prudent fiscal policies amid shrinking aid inflows and encouraged authorities to pursue a forward-looking fiscal strategy focused on expanding tax revenues, rebuilding fiscal space, and addressing debt risks.
They emphasized the need to improve the quality of public spending, strengthen public financial management, and mobilize more concessional financing to address Liberia’s significant infrastructure needs.
Liberia Welcomes IMF’s Confidence
Reacting to the development, Liberia’s Finance and Development Planning Minister, Augustine Kpehe Ngafuan, described the IMF Board’s approval as a strong vote of confidence in the country’s economic management under President Joseph Boakai’s administration.
“This successful review puts Liberia firmly on track to potentially benefit from significant additional support in 2026 under the IMF’s Resilience and Sustainability Facility,” Minister Ngafuan said.
The RSF is a facility designed to help qualifying countries address climate-related vulnerabilities and strengthen resilience.
He also commended Central Bank Governor Henry F. Saamoi and his team for effective coordination with fiscal authorities, noting that such collaboration is crucial in navigating the country’s macroeconomic challenges.
Minister Ngafuan reaffirmed the government’s commitment to the ARREST Agenda for Inclusive Development (AAID), pledging to maintain fiscal discipline, expand the economy, and mobilize resources to meet national development priorities.
A 40-Month Support Program
Liberia’s current ECF arrangement amounts to SDR 155 million (approximately US$223 million), or 60 percent of the country’s IMF quota. The financing is being released in tranches over the program’s 40-month duration, contingent upon successful performance reviews.
With this second review completed, the IMF has reinforced its partnership with Liberia at a time of constrained external aid and heightened development needs, signaling confidence in the country’s economic reform trajectory and governance efforts.
