The Acting Minister of Finance and Development Planning, Anthony G. Myers, has revealed that the International Monetary Fund (IMF) will resume its US$209 million Extended Credit Facility (ECF) program to Liberia. Addressing the Ministry of Information, Cultural Affairs and Tourism (MICAT) regular press briefing on Tuesday, August 27, 2024, Minister Myers announced that Liberia has reached a staff-level agreement with the IMF on a new 40-month ECF arrangement worth $209 million. According to him, the IMF board is scheduled to discuss the program on September 25, with the final step being the submission of the 40-month financial project to the IMF board for approval. The Finance Minister explained that the ECF is designed to provide credit that helps close financial gaps and support balanced payments. He highlighted that Liberia relies heavily on imported goods, such as rice and clothing. With the country’s dependence on imports and fluctuating foreign exchange rates, business owners face challenges due to high exchange rates. Minister Myers stressed that the ECF would aid in implementing key government policies, including restoring fiscal sustainability, rebuilding external reserves, ensuring financial sector stability, and revitalizing reforms to address governance and corruption.
He further noted that the foreign reserves, bolstered by the ECF, would ensure that Liberia has sufficient foreign exchange to meet its international financial obligations. Reflecting on past economic challenges, the Minister pointed out that from 2019 to 2020, the exchange rate was stable. However, in 2022, the previous government’s failure to meet ECF program requirements led to increase exchange rates and inflation. He added that the microeconomic loan provided by the ECF would help stabilize the economy, explaining that higher exchange rates drive inflation, which in turn raises the cost of imported goods. The Finance Minister cited that the ECF offers medium-term financial aid to low-income countries that are facing prolonged balance of payments difficulties and that this program is specifically designed to provide support to Low Income Countries dealing with ongoing economic challenges, allowing them to address their balance of payments issues over an extended period of time. “By providing this medium-term assistance, the ECF helps these countries stabilize their economies and work towards sustainable growth and development” He maintained Also, Minister Myers extolled President Boakai’s decisive actions, including reforms at the Central Bank of Liberia (CBL), for accelerating progress and enabling the government to reach this point. “This will also help ensure that the CBL has sufficient reserves to stabilize the economy,” Minister Myers concluded. LINA