Sierra Leone seeks $253 million loan from IMF

September 22, 2024

Sierra Leone has requested a 38-month Extended Credit Facility (ECF) arrangement from the International Monetary Fund (IMF), valued at around $253 million.

This facility aims to restore economic stability through continued macroeconomic adjustment to address debt vulnerabilities, reduce inflation, and rebuild international reserves. It also seeks to support inclusive growth and poverty reduction through structural reforms and targeted social spending, while revitalizing the reform agenda to strengthen governance and institutions.

The IMF highlighted that Sierra Leone had implemented fiscal and monetary reforms, which led to a 2.8% GDP deficit reduction in 2023.

"The reform momentum has borne fruit. Inflation declined to 25% in August 2024, down from a peak of 55% in October 2023, and the sharp exchange rate depreciation experienced in 2022 and early 2023 was halted," the IMF stated.

Economic growth exceeded 5% in 2022 and 2023, driven by strong mining activity. Sierra Leone’s public debt remains sustainable but carries a high risk of distress.