LIBERIA-FMI:IMF Executive Board Concludes the Third Review under the Extended Credit Facility, and Approves a SDR 193.8 million Resilience and Sustainability Facility Arrangement for Liberia

IMF Executive Board Concludes the Third Review under the Extended Credit Facility, and Approves a SDR 193.8 million Resilience and Sustainability Facility Arrangement for Liberia

FOR IMMEDIATE RELEASE

The IMF Executive Board approved a new 21-month arrangement under the Resilience and Sustainability Facility (RSF) for Liberia in the amount of SDR 193.8 million (about US$266 million, equivalent to 75 percent of quota), aimed at supporting the authorities’ efforts to strengthen macroeconomic resilience by building buffers against climate shocks. The Board also completed the third review under the existing Extended Credit Facility (ECF) arrangement, enabling the immediate disbursement of SDR 19.30 million (about US$26.49 million).
The Liberian economy has continued to perform strongly, with growth accelerating to 5.1 percent in 2025 and expected to remain at that level in 2026. Despite deteriorating global conditions and elevated uncertainty, the economic outlook remains favorable, with GDP growth expected to stabilize at 5.6 percent over the medium term, assuming full and timely implementation of the ambitious reform program underpinning both arrangements.
Liberia has advanced its ambitious reform agenda and restored fiscal sustainability. Key priorities going forward include: (i) boosting domestic revenue mobilization, (ii) upgrading public infrastructures, including through climate-resilient investments, (iii) advancing the restructuring of weak banks and strengthening the financial regulatory framework, and (iv) addressing governance weaknesses.

Washington, DC – April 27, 2026: The Executive Board of the International Monetary Fund (IMF) today approved a 21-month arrangement under the Resilience and Sustainability Facility (RSF) for Liberia in the amount of SDR 193.8 million (about US$266 million, equivalent to 75 percent of quota). The Board also concluded the third review of the 40-month arrangement under Extended Credit Facility (ECF), allowing an immediate disbursement of SDR 19.3 million (about US$26.49 million). Total disbursement under the ECF arrangement have now reached SDR 77.2 million (about US$105.96 million).

Liberia’s ECF arrangement, amounting to SDR 155 million (60 percent of quota), was approved by the IMF Executive Board on September 25, 2024, to support the authorities’ program to restore macroeconomic stability, ensure debt sustainability, safeguard financial stability, and strengthen governance.

Economic growth accelerated in 2025 to 5.1 percent, largely driven by an expansion in mining production. The political environment has remained supportive of reforms under the government’s national development plan—ARREST Agenda for Inclusive Development.

Following the Executive Board discussion, Mr. Bo Li, Acting Chair and Deputy Managing Director, made the following statement:

“The authorities have maintained sound macroeconomic policies and made some progress on structural reforms under the Extended Credit Facility (ECF) arrangement. Economic performance has been robust. At the same time, deteriorating global conditions have increased downside risks, particularly due to elevated oil prices and a decline in bilateral assistance.

“Fiscal adjustment has helped reduce debt vulnerabilities. Expenditure rationalization has supported the reallocation of resources toward priority investment projects and critical social programs, but further progress is needed in this regard.

“To mitigate the impact of elevated oil prices, the authorities have introduced temporary and targeted subsidies to support public transportation. The recently adopted supplementary budget will allow for higher allocation to social spending while preserving fiscal discipline.

“The authorities remain committed to accelerating domestic revenue mobilization, including through: (i) the planned rollout of the VAT in 2027, (ii) mining taxation reform, and (iii) the rationalization of tax exemptions. These measures are essential to finance priority investments under the Agriculture, Roads, Rule of Law, Education, Sanitation & Tourism Agenda. In parallel, improvements in the selection, implementation, and monitoring of investment projects will be critical to enhancing public spending quality and raising growth potential.

“The Central Bank of Liberia is committed to remaining vigilant and maintaining a data-dependent monetary policy amid higher global oil prices. It will also continue to ensure a timely and effective implementation of the financial regulatory framework, including enforcement of banks’ restructuring plans. Continued efforts to reduce non-performing loans will further strengthen banks’ balance sheets and support the expansion of credit to the private sector.

“Strengthening the Liberia Anti-Corruption Commission will enhance transparency and accountability, including through ensuring the publication of public officials’ asset declarations. Steadfast implementation of the governance diagnostic recommendations will help address key institutional and cross-sectoral weaknesses.

“The Resilience and Sustainability Facility arrangement will support the implementation of the authorities’ climate adaptation efforts and enhance pandemic preparedness. It will leverage synergies with other development partners and help catalyze external financing. Together with the ECF reforms, it will enhance economic resilience and reduce balance-of-payment risks.”

Table 1. Liberia: Selected Economic Indicators, 2023–30
	2023	2024	2025		2026		2027	2028	2029	2030
	Est.	Est.	2^nd Review	Est.	2^nd Review	Proj.	Proj.	Proj.	Proj.	Proj.

Real GDP	4.6	4.0	4.6	5.1	5.4	5.1	5.4	5.6	5.6	5.6
of which: Mining & panning	5.7	2.1	6.0	17.0	11.0	10.7	10.8	11.4	10.8	10.6
Nominal non-mining per capita GDP (U.S. dollars)	667	704	723	708	753	738	770	804	840	880
Nominal GDP (millions of U.S. dollars)	4,390	4,778	5,160	5,216	5,525	5,641	6,048	6,455	6,896	7,383
Consumer prices (end of period)	10.1	8.2	10.7	8.3	8.0	5.8	6.2	5.5	5.1	5.0
Population (millions)	4.9	5.1	5.2	5.2	5.3	5.4	5.4	5.6	5.7	5.8

Total revenue and grants	20.1	22.3	20.3	21.0	20.2	20.6	20.5	20.4	20.5	20.2
Total revenue	13.4	14.5	15.2	15.9	15.8	16.3	16.4	16.7	17.0	17.0
Grants²	6.7	7.8	5.1	5.1	4.5	4.3	4.1	3.8	3.6	3.2
Total expenditure²	28.6	24.1	22.1	22.0	22.7	22.3	21.6	22.0	22.9	21.3
Current expenditure³	20.9	16.1	16.4	16.7	16.8	16.6	16.0	16.2	16.3	15.2
Capital expenditure	7.7	8.1	5.7	5.4	5.9	5.7	5.6	5.9	6.5	6.1
Overall balance, including grants²	-8.5	-1.8	-1.8	-1.1	-2.5	-1.7	-1.1	-1.6	-2.3	-1.1
Overall balance, excluding grants²	-15.2	-9.6	-6.9	-6.2	-7.0	-6.0	-5.3	-5.3	-5.9	-4.3
Total public debt (nominal)	57.2	56.4	55.9	54.9	54.9	54.4	55.3	52.7	50.9	48.1
Public external debt⁴	35.4	35.9	37.2	35.8	37.7	36.8	39.7	39.0	39.5	38.8
Public domestic debt⁵	21.8	20.4	18.7	19.1	17.1	17.6	15.6	13.7	11.4	9.3

M2/GDP	26.8	28.0	28.2	31.0	28.3	31.2	31.7	31.7	31.7	31.9
Credit to private sector (percent of GDP)	17.9	17.8	17.9	17.1	18.2	17.3	17.8	18.5	19.4	20.5
Credit to private sector (annual percent change)	34.3	8.4	8.5	4.8	8.9	9.5	10.0	11.0	12.0	13.0

Current account balance, including grants	-20.1	-8.1	-14.2	-6.5	-13.4	-11.0	-11.3	-11.7	-12.2	-12.6
Current account balance, excluding grants	-23.4	-10.5	-16.5	-8.8	-15.4	-13.0	-13.1	-13.3	-13.8	-13.9
Trade balance	-18.4	-4.3	-5.4	-5.0	-4.2	-5.5	-5.5	-5.5	-5.2	-5.1
Exports	25.8	27.4	31.3	39.3	31.2	38.7	38.9	39.9	40.4	39.8
Imports	-43.7	-31.8	-36.6	-44.3	-35.4	-44.2	-44.4	-45.4	-45.6	-44.9
Grants (donor transfers, net)	3.3	2.4	2.3	2.3	2.0	1.9	1.8	1.6	1.5	1.4
Gross official reserves (millions of U.S. dollars)	487	475	595	572	679	744	1005	1062	1150	1221
In months of next year’s imports	2.6	1.9	2.6	2.0	2.9	2.4	3.0	2.9	3.0	3.0
Net international reserves (millions of U.S. dollars)	221	234	280	283	345	324	369	458	578	681

Sources: Liberian authorities; and IMF staff estimates and projections.

¹Central government operation is based on a commitment basis and refers to the budgetary central government operations and off-budget projects.

² The total amount of external project grants and loans, along with the associated spending, has been revised down from 2021 onwards to reflect the revised authorities’ database prepared together with donors.

³Ratios are calculated using external debt (in U.S. dollars) evaluated at the end of period exchange rate over GDP (in U.S. dollars) evaluated at the period average exchange rate.

⁴Including central government debt owed to the Central Bank of Liberia.

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