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An International Monetary Fund (IMF) team led by Christian Saborowski visited Sierra Leone from April 8th to 12th.
The purpose of the visit was to engage with Sierra Leonean authorities in discussions regarding a new arrangement under the Extended Credit Facility (ECF).
According to a report, they made substantial progress towards understanding the authorities’ development objectives and the reforms needed to achieve macroeconomic stability and maintain debt sustainability.
It was disclosed that discussions will continue over the coming months. Continued fiscal and monetary tightening, as well as preservation of reserves, will be critical in the meantime.
The IMF team held discussions with the Sierra Leonean authorities on their request for financial support under a new arrangement under the ECF after the previous arrangement came to an end on November 20, 2023.
The discussions continued during the Spring Meetings of the IMF and the World Bank Group in Washington, DC. During these meetings, Saborowski issued the following statement at the end of the discussion:
Sierra Leonean authorities substantially tightened macroeconomic policies in 2023 and into the first quarter of 2024. They are beginning to reap the fruits of the adjustment in the form of a stable exchange rate and declining inflation.
He also stated that the remaining adjustment required to keep debt on a sustainable path is significant, financing needs are high, and foreign reserves have fallen.
He continued that the authorities and the staff team reached agreement on most policies to underpin the requested arrangement under the ECF. They reached understandings on the authorities’ development objectives and reforms needed to achieve macroeconomic stability and maintain debt sustainability.
He said discussions will continue over the coming months, and the team plans to return to Freetown for a follow-up mission in early September to reach a staff-level agreement on the new arrangement under the ECF. Continued fiscal and monetary tightening, as well as preservation of reserves, will be critical in the meantime.
He concluded by thanking Sierra Leonean authorities for their warm hospitality and the productive discussions.
