IMF Concludes Second Review of ECF in Liberia, Approves $11.4m

December 13, 2013 10:20 AM

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The International Monetary Fund (IMF), has concluded the second review of Liberia’s performance under the Extended Credit Facility (ECF) arrangement, an official report has said.

The IMF’s Deputy Managing Director, Naoyuki Shinohara in a report after the review, said that the fund also approved the disbursement of 11.4 million dollars to Liberia.

Shinohara said that the latest approval would bring total disbursement under the ECF arrangement to Liberia to 22.15 million dollars.

``Liberia’s economic growth remains strong and the medium-term outlook is positive following new opportunities in the mining and plantation sectors.

``The non-resource real GDP growth is expected to continue to pick up in 2014 and 2015 as the authorities continue to implement its transformation agenda.

He said that the Liberia authorities had shown huge commitment in implementing programmes covered by the ECF arrangement. `` However, there were institutional and capacity constraints that affected recent programme performance such as deviations on government revenue and domestic financing.

``Foreign reserves fell below the programme floor, reflecting in part higher intervention in the foreign exchange market to mitigate depreciation pressures,’’ he said.

The IMF official said that Liberia authorities were taking steps to build adequate reserves, including the strengthening of foreign exchange auction and enhancing liquidity management.

``Action is being taken by the authorities to strengthen budget implementation while scaling up public investment.

``Financial sector reform focus should be to address high credit risks and strengthen the legal and institutional environment to promote inter-mediation,’’ he said.


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