The International Monetary Fund (IMF) has approved a disbursement of US$26.5 million to Liberia following the successful completion of the second review under the country’s Extended Credit Facility (ECF) arrangement.
The funds, equivalent to SDR 19.3 million, are intended to support macroeconomic stability and bolster the Central Bank of Liberia’s foreign exchange reserves.
The decision was made by the IMF Executive Board on October 1, 2025, following the conclusion of the Article IV Consultation and review of Liberia’s performance under the 40-month ECF program, which was initially approved in September 2024. The latest disbursement brings total support under the arrangement to US$79.4 million (SDR 57.9 million), out of a total commitment of approximately US$223 million (SDR 155 million).
IMF Praises Fiscal Discipline and Reform Efforts
In a statement following the Board meeting, Acting Chair and Deputy Managing Director Bo Li commended Liberia’s progress in implementing sound macroeconomic policies and structural reforms. “Measures to reduce the large fiscal deficit, mitigate debt vulnerabilities, and strengthen foreign exchange reserves have yielded encouraging results,” Li said.
He also noted the government’s swift response to the abrupt termination of major grant support, including USAID funding, by reprioritizing spending and increasing domestic revenue mobilization to protect critical social programs.
IMF Executive Directors echoed the praise, highlighting Liberia’s prudent fiscal stance amid declining foreign aid. They welcomed the government’s forward-looking strategy to boost tax revenues, rebuild fiscal space, and address development needs while maintaining debt sustainability.
The Board emphasized the importance of continued fiscal reforms, particularly in improving public spending efficiency and strengthening financial and investment management. Directors also urged the government to maintain robust debt management policies and to mobilize donor support through grants and concessional financing to close infrastructure gaps.
Government Welcomes IMF Endorsement
Liberia’s Minister of Finance and Development Planning, Augustine Kpehe Ngafuan, described the IMF’s decision as a “vote of confidence” in the country’s economic trajectory. He noted that Liberia’s performance under the ECF arrangement positions it to potentially qualify for additional support under the IMF’s Resilience and Sustainability Facility (RSF) in 2026, which targets climate-related vulnerabilities.
Ngafuan also praised the Central Bank of Liberia, led by Governor Henry F. Saamoi, for its coordination with fiscal authorities under the leadership of President Joseph Nyuma Boakai. He reaffirmed the administration’s commitment to reform and resource mobilization under the ARREST Agenda for Inclusive Development (AAID).
