Washington, DC – 16th December, 2025 – The International Monetary Fund (IMF) has completed the first and second reviews of Sierra Leone’s arrangement under the Extended Credit Facility (ECF), enabling an immediate disbursement of about US$79.8 million. This brings total disbursements under the program to approximately US$127.8 million.
The ECF arrangement, approved on October 31, 2024, aims to maintain debt sustainability, support economic growth, reduce inflation, rebuild reserves, and strengthen governance and public institutions. The first review had been delayed due to fiscal overruns, reserve depletion, and reform delays in 2024. However, authorities have since implemented corrective measures, bringing the program back on track.
The IMF granted waivers for past non-compliance on several performance criteria, including net credit to government, net domestic assets, and net international reserves. Economic performance has improved, with growth projected at 4.4 percent in 2025, supported by mining and agriculture. Inflation declined to 4.4 percent in October 2025, and the leone has remained stable.
Despite these gains, Sierra Leone’s reserves fell to 1.5 months of imports as of September, and the country’s debt remains at high risk of distress. The IMF emphasized the importance of continued fiscal consolidation, improved revenue collection, and social spending protection to maintain debt sustainability.
Acting IMF Chair Bo Li noted that strengthening fiscal policy, enhancing debt management, and rebuilding reserves are critical for sustaining macroeconomic stability. He also highlighted the need for robust structural reforms, including governance and anti-corruption measures, to support long-term growth.
The IMF’s disbursement provides vital support for Sierra Leone’s economic stabilization and ongoing reforms, reinforcing the country’s path toward sustainable development.
By Allan Dulls
