IMF Begins Dual Review of Sierra Leone’s $248.5m Credit Facility

A mission from the International Monetary Fund (IMF) has begun the combined first and second reviews of Sierra Leone’s $248.5 million Extended Credit Facility (ECF) programme, which was approved in October 2024 with an initial disbursement of $46.6 million.

The ECF aims to restore debt sustainability, contain inflation, and build reserves, while promoting inclusive growth through structural reforms and targeted spending. It also seeks to strengthen governance by tackling corruption, improving institutions, and upholding the rule of law.

During a courtesy meeting with the Financial Secretary and senior management of the Ministry of Finance, IMF Mission Chief Garth Peron Nicholls explained that the two-week review would cover both technical and policy issues. Discussions will also extend to the Resilience and Sustainability Facility (RSF) programme, focusing on revenue performance, expenditures, domestic interest rates, financing needs, tax reforms, and other critical matters.

Financial Secretary Matthew Dingie welcomed the mission, noting that government is fully prepared for the reviews with the necessary data in place. He highlighted positive trends, including inflation easing to 5.85%, exchange rate stability, reduced domestic interest rates, and rationalised expenditure despite revenue shortfalls.

Dingie expressed optimism that the National Revenue Authority would meet its revenue targets by the end of the third quarter, citing ongoing reform measures. He stressed that the reviews are vital to the successful implementation of both the ECF and RSF programmes.

The combined review will assess progress on corrective actions agreed with the IMF, with the aim of meeting all structural benchmarks and commitments by November 2025. Successful completion is expected to unlock a second disbursement under the ECF.

Meanwhile, Sierra Leone is preparing a formal request for access to the IMF’s RSF, a facility designed to support long-term reforms addressing climate change and resilience. If approved at 75% of quota, Sierra Leone could access approximately $210 million.

The advanced technical mission will finalise reform details, including implementation timelines, responsible agencies, coordination mechanisms, partner involvement, and other technical aspects critical to advancing the country’s reform agenda.