The International Monetary Fund (IMF) has approved 95.9 million dollars three-year Extended Credit Facility (ECF) arrangement for Sierra Leone.
Mr Min Zhu, IMF’s Deputy Managing Director, stated this in a report released on Tuesday at the end of the Fund’s Article 4 consultation in Sierra-Leone.
The News Agency of Nigeria (NAN) reports that ECF supported-programmes seek to facilitate high quality public investment and growth enhancing reforms in the context of macro-economic stability.
Zhu said that ECF approval for Sierra Leone was an equivalent of 60 per cent of the country’s quota in the IMF.
“The overall amount for the ECF programme represents 60 per cent of Sierra Leone’s quota in the IMF and enables the immediate disbursement of 13.7 million dollars,’’ he said.
The IMF official said that Sierra Leone had achieved strong macro-economic gains in recent years due to iron ore production.
“Economic growth has been robust, while inflation has been falling on the back of a tight monetary stance, a stable exchange rate, and lower food prices.
“ The medium-term outlook is favourable, with policy focused on achieving strong broad-based growth, further disinflation , and an improved external position,’’ he said.
Zhu said that continued effort was needed to strengthen policy implementation, particularly in the fiscal area.
According to him, the authorities’ plan to strengthen public financial management remains appropriate, to enhance revenue mobilisation, improve spending controls, and reduce domestic debt.
He listed key revenue components in Sierra Leone’s fiscal strategy to include tax administration improvements, tax exemptions reduction, and the adoption of a comprehensive fiscal regime for the natural resources sector.
“Timely implementation of these reforms will be critical to buttress macro-economic stability and the credibility of fiscal policy.
“The new fund-supported programmes aims to underpin the authorities’ development and poverty-reduction strategy,’’ he said.
