The financing comprises $26.2 million under the Extended Credit Facility and $23.96 million through the Resilience and Sustainability Facility.
The IMF said Liberia’s economy grew by 5.1% in 2025 and was projected to expand by 5.5% in 2026, supported by mining, construction and manufacturing. “The authorities have continued to implement sound policies, allowing them to make significant progress under the Extended Credit Facility and the Resilience and Sustainability Facility arrangements,” IMF Acting Chair and Deputy Managing Director Bo Li said.
Liberia has maintained fiscal consolidation through stronger revenue collection, helping reduce debt vulnerabilities while allowing capital expenditure to increase.
However, Li called for unproductive spending to be reduced to create additional fiscal space for priority infrastructure without weakening fiscal discipline.
Liberia plans to introduce value-added tax in 2027, reform mining taxation and rationalise tax exemptions. “A successful rollout of the VAT will generate steady revenues to finance priority investments,” Li said.
The government also plans to spread the use of a one-off mining concession payment across 2026 and 2027 because of constraints affecting project implementation.
The IMF called for improved selection, implementation and monitoring of capital projects to strengthen public spending and economic growth.
Bank recapitalisation is progressing more slowly than planned, while non-performing loans continue to weaken balance sheets and restrict private-sector credit. “Accelerating the reduction of non-performing loans would strengthen bank balance sheets and support private-sector credit growth,” Li said.
Issuing new banknotes is also an immediate priority to address continuing shortages.
The IMF called for publication of Liberia’s governance diagnostic report and implementation of an action plan addressing corruption and institutional weaknesses.
Removing legal barriers preventing the publication of public officials’ asset declarations would further strengthen accountability and transparency.
Total disbursements under the Extended Credit Facility have reached approximately $131.67 million. The Resilience and Sustainability Facility provides Liberia with access to about $265 million for climate-related reforms.
Li said continued technical assistance and cooperation with development partners would be critical to implementing climate measures and reducing balance-of-payments risks.
–IMF/ChannelAfrica–
