Contributed
The Executive Board of the International Monetary Fund (IMF) in a press statement on Friday 3rd April 2020 approved the disbursement of another 21.13 million dollar budget support to the Government of Sierra Leone under the current Extended Credit Facility programme.
The approval came after the completion of the Fund second review of the country’s performance under the 172.1 million dollar programme that was signed in November 2018. This will enable the IMF to immediately disburse 21.13 million dollar, bringing total disbursements under the arrangement to about US$63.39 million dollar.
This programme aims to create fiscal space for development needs by strengthening revenue mobilization, containing current spending and improving the efficiency of public investment.
In his statement, the Acting Chairman and First Deputy Managing Director, Mr. Geoffrey Okamoto, said Sierra Leone has been making steady progress under the Fund supported program and that the authorities have demonstrated firm commitment to their reform agenda. He furthered that while the program’s medium term goals remain appropriate to enable future growth and development, the onset of the global COVID19 pandemic poses significant short term risks. He suggested that combating the economic fallout of the crisis and protecting the health and wellbeing of Sierra Leoneans should be the immediate priority.
He commend the government for the progress made so far in mobilizing domestic revenue and prudent execution of budgeted expenditures. This he said has stabilized domestic borrowing needs and allowed inflation pressures to ease.
He called on the authorities in Sierra Leone to prioritize additional spending to help cushion the impact of COVID19 especially in the critical and uncertain period ahead. He reaffirms the Fund’s commitment to work closely with the Government to help address the priority health and economic needs to combat the fallout of the COVID19 pandemic.
Responding to this development Minister of Finance Jacob Jusu Saffa (photo) expressed his delight that the reforms of the Government of President Julius Maada Bio under the New Direction is receiving international commendation. “It is in the interest of Sierra Leone to have an economic programme with the IMF and also to be on track meeting economic benchmarks and reforms of the programme” he said.
The Minister further stated that this disbursement will give Government the space to spend on key priorities of Government more so the COVID-19 pandemic ravaging the world. He said this is also a clear indication of the trust and confidence development partners and the international community has for the leadership of HE President Julius Maada Bio and the SLPP led Government.
It could be recalled that prior to the 2018 elections, the International Monetary Fund (IMF) and other development partners suspended their programmes (Funds) to the Government of Sierra Leone because the then APC Government failed to keep to the then Extended Credit Facility (ECF) Programme which led to the suspension of the Fund’s programme in Sierra Leone. But with the astute leadership of the Hon. Minister of Finance Jacob Jusu Saffa, Sierra Leone was able to get a new programme with the IMF which was the catalyst for other development partner’s interventions.
According to the IMF, since coming to office in early 2018, the Government implemented key reforms and launched a new National Development Plan with a strong emphasis on investing in education, infrastructure and improving governance. Growth stabilized at 3.5 percent in 2018 before picking up to an estimated 5.1percent in 2019, on the back of a broad based recovery of economic activity. At the same time, inflation moderated to under 14percent by end-2019.
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