IMF Mission Visits Monrovia to Evaluate Financial Support Under Extended Credit Facility

Published: June 24, 2024

Monrovia – The International Monetary Fund (IMF) mission is visiting Monrovia to evaluate the possibility of providing financial support under the Extended Credit Facility (ECF). Speaking at the commencement of the engagements on Monday, June 24, 2024, at the Ministry of Finance and Development Planning, IMF Mission Chief Daehaeng Kim expressed his enthusiasm for being in Liberia as part of the ECF assessment.

Finance and Development Planning Minister Boima S. Kamara conveyed the government’s deep gratitude for the ongoing partnership with the IMF, highlighting the collaboration as a cornerstone for the country’s economic stability and development.

Minister Kamara emphasized the critical nature of restoring the 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 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,” he added.

The government assured Mr. Kim and the IMF mission of its dedication to a successful review and continuation of the ECF program. Minister Kamara highlighted that the team has been actively collaborating with the Central Bank of Liberia (CBL) and commercial banks to address the prior actions discussed in earlier meetings. To meet the IMF’s requirements and demonstrate the country’s commitment to compliance, the government has instituted several key measures, including:

• Establishment of a Liquidity Working Group
• Creation of a Cash Management Committee
• Development of a Tax Expenditure Report and Administrative Regulations
• Formation of a Debt Management Committee
• Implementation of a Medium-Term Debt Strategy
• Preparation of Annual Borrowing Plans
• Formation of a Budget Sector Working Group
• Ongoing Payroll Update and Headcounts
• Introduction of a Value Added Tax (VAT)

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