<\/p>\n
The IMF Executive Board completed the third review under the country\u2019s Extended Credit Facility (ECF), unlocking an immediate disbursement of $31.7 million (SDR 23.333 million). This brings total disbursements under the programme to about $158.6 million (SDR 116.664 million).<\/p>\n
<\/p>\n
In addition, the Board approved a $211.5 million (SDR 155.550 million) arrangement under the Resilience and Sustainability Facility (RSF), aimed at strengthening climate resilience and external stability. Disbursements under the RSF will begin after the first review.<\/p>\n
<\/p>\n
The IMF said Sierra Leone\u2019s economic outlook remains broadly stable, although external pressures are weighing on growth.<\/p>\n
<\/p>\n
Growth is expected to slow to 4% in 2026, while inflation is projected to rise to 11.6% by year-end, partly due to spillovers from the Middle East conflict.<\/p>\n
<\/p>\n
Acting Chair of the IMF Executive Board Kenji Okamura said recent policy measures have helped stabilise key economic indicators. \u201cThe authorities\u2019 policy tightening has helped stabilise the exchange rate, lower borrowing costs and inflation, and restore private credit access,\u201d Okamura said.<\/p>\n
<\/p>\n
However, Okamura warned that vulnerabilities remain, particularly related to debt and foreign reserves. \u201cReserve coverage remains low, and debt is at high risk of distress,\u201d Okamura said.<\/p>\n
<\/p>\n
The IMF noted that Sierra Leone has some fiscal space to manage pressures linked to global shocks but emphasised the importance of maintaining discipline. \u201cPersevering on fiscal consolidation is key to keep debt sustainable,\u201d Okamura said.<\/p>\n
<\/p>\n
The Fund also addressed fuel subsidies, saying temporary support measures may be justified in the absence of strong social safety nets.<\/p>\n
<\/p>\n
\u201cThe fuel price subsidy can help avoid disruptive price movements however, it needs to remain temporary and transparent,\u201d Okamura said.<\/p>\n
<\/p>\n
The IMF called for continued structural reforms, including improvements in public financial management, revenue mobilisation and debt oversight.<\/p>\n
<\/p>\n
Okamura highlighted the need for stronger tax administration and better management of mining revenues to support fiscal stability.<\/p>\n
<\/p>\n
The Fund also urged authorities to tighten monetary policy if inflation persists and to rebuild foreign exchange reserves.<\/p>\n
<\/p>\n
\u201cMonetary policy should be tightened if inflationary pressures persist,\u201d Okamura said.<\/p>\n
<\/p>\n
Further recommendations include strengthening the banking sector, resolving problem financial institutions and implementing governance and anti-corruption reforms.<\/p>\n
<\/p>\n
The newly approved RSF arrangement will support long-term resilience by focusing on climate-sensitive investment, fiscal planning and financial system stability.<\/p>\n
<\/p>\n
\u201cThe RSF arrangement will promote balance of payments stability by supporting resilience to climate shocks,\u201d Okamura said.<\/p>\n
<\/p>\n
–IMF\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":37544,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-37543","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"The International Monetary Fund (IMF) has approved new disbursements and a climate-focused facility to support Sierra Leone\u2019s economic stability and reform agenda.","published_date":"","news_description":"The International Monetary Fund (IMF) has approved new disbursements and a climate-focused facility to support Sierra Leone\u2019s economic stability and reform agenda.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/37543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/37543\/revisions"}],"predecessor-version":[{"id":37545,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/37543\/revisions\/37545"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/37544"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=37543"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=37543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}