IMF Reaches Staff-Level Agreement with Liberia on Third ECF Review, New Climate Facility
An International Monetary Fund (IMF) team has reached a staff-level agreement with the Government of Liberia on the completion of the third review under the country’s Extended Credit Facility (ECF) arrangement, alongside a proposed new climate-focused programme under the Resilience and Sustainability Facility (RSF).
The IMF mission, led by Mr. Daehaeng Kim, visited Monrovia from January 7 to 20, 2026, to hold discussions with the Liberian authorities. The ECF arrangement was approved by the IMF Executive Board on September 25, 2024, providing total access of SDR 155 million (about US$210 million) over a 40-month period.
In addition, the mission discussed a proposed RSF arrangement with total access of SDR 193.8 million (about US$265 million), aimed at supporting Liberia’s efforts to address climate-related vulnerabilities and strengthen pandemic preparedness through to end-2027. Consideration of both programmes by the IMF Executive Board is tentatively scheduled for early March 2026.
Speaking at the conclusion of the mission, Mr. Kim said IMF staff and the Liberian authorities had agreed on the economic and financial policies required to complete the third ECF review.
“IMF staff and Liberia authorities have reached a staff-level agreement on the economic and financial policies needed to complete the third review of the ECF-supported program,” he said, adding that agreement had also been reached on Liberia’s request for support under the RSF.
According to the IMF, Liberia’s macroeconomic performance has strengthened, supported by ongoing reforms and favourable economic outcomes. Real Gross Domestic Product (GDP) growth is estimated at 5.1 percent in 2025, up from 4.0 percent in 2024, driven largely by strong mining activity and moderate expansion in the agriculture and services sectors.
Inflation declined significantly during the year, averaging 4.4 percent in the fourth quarter of 2025, compared to 12.5 percent in the first quarter. The exchange rate remained broadly stable, with some seasonal appreciation recorded toward the end of 2025.
Fiscal performance also improved, with the primary fiscal surplus, excluding grants, rising from 1.3 percent of GDP in 2024 to an estimated 1.4 percent in 2025, exceeding the programme target of 1.1 percent.
Mr. Kim stressed that sustained reform implementation would be critical to consolidating macroeconomic stability, reducing debt vulnerabilities, and strengthening the banking sector.
“Continued prudent fiscal policies—supported by enhanced domestic revenue mobilization and public financial management—are critical for creating fiscal space for development priorities,” he noted, while underscoring the importance of strengthening monetary policy effectiveness and banking sector regulation.
The proposed RSF programme, subject to IMF Board approval, will support reforms across three key pillars: disaster risk management and pandemic preparedness; climate finance and governance; and water and food security. The IMF said the facility is expected to enhance institutional capacity, strengthen resilience to external shocks, and catalyse long-term climate financing from development partners.
During the mission, the IMF team held meetings with President Joseph N. Boakai, leadership of the National Legislature, Minister of Finance and Development Planning Augustine K. Ngafuan, Executive Governor of the Central Bank of Liberia Henry F. Saamoi, senior government officials, and representatives of development partners.
