IMF Approves $266m RSF Arrangement for Liberia, Completes Third ECF Review
The International Monetary Fund (IMF) has approved a 21-month arrangement for Liberia under its Resilience and Sustainability Facility (RSF), amounting to SDR 193.8 million (approximately US$266 million), equivalent to 75 percent of the country’s quota.
In addition, the IMF Executive Board concluded the third review of Liberia’s 40-month programme under the Extended Credit Facility (ECF), unlocking an immediate disbursement of SDR 19.3 million (about US$26.49 million). This brings total disbursements under the ECF arrangement to SDR 77.2 million (around US$105.96 million).
Liberia’s ECF programme, valued at SDR 155 million (60 percent of quota), was initially approved in September 2024 to support the government’s efforts to restore macroeconomic stability, ensure debt sustainability, safeguard financial sector stability, and strengthen governance frameworks.
Economic activity in Liberia strengthened in 2025, with growth accelerating to 5.1 percent, largely underpinned by increased mining output. The reform agenda has also been supported by a relatively stable political environment, aligned with the government’s ARREST Agenda for Inclusive Development.
Commenting on the Board’s decision, IMF Acting Chair and Deputy Managing Director, Bo Li, noted that Liberia has maintained prudent macroeconomic policies and made progress on structural reforms under the ECF-supported programme.
He, however, cautioned that worsening global conditions pose downside risks to the outlook, particularly through elevated oil prices and reduced bilateral assistance inflows.
According to him, ongoing fiscal consolidation efforts have helped reduce debt vulnerabilities, with expenditure rationalisation enabling a reallocation of resources towards priority investments and essential social programmes. Nonetheless, he stressed the need for further progress to sustain these gains.
To cushion the impact of rising oil prices, the Liberian authorities have introduced temporary and targeted subsidies for public transportation. A recently approved supplementary budget is also expected to boost social spending while maintaining fiscal discipline.
On the revenue front, the IMF highlighted the authorities’ commitment to strengthening domestic revenue mobilisation through the planned introduction of Value Added Tax (VAT) in 2027, reforms to mining taxation, and the rationalisation of tax exemptions.
The IMF further underscored the importance of improving public investment management, particularly in project selection, implementation, and monitoring, to enhance spending efficiency and support long-term growth.
Monetary authorities, led by the Central Bank of Liberia, are expected to maintain a data-driven policy stance amid global uncertainties, while ensuring effective implementation of financial sector reforms, including bank restructuring measures and efforts to reduce non-performing loans.
On governance, the Fund stressed the need to strengthen the Liberia Anti-Corruption Commission, particularly through enforcing the publication of asset declarations by public officials, as part of broader efforts to enhance transparency and accountability.
The newly approved RSF arrangement is expected to support Liberia’s climate adaptation initiatives and bolster pandemic preparedness, while also helping to catalyse additional external financing. Combined with ongoing ECF reforms, the IMF said the programme will strengthen economic resilience and mitigate balance of payments risks.
