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Extended Credit Facility: Sierra Leone and the IMF reach an agreement

23/09/2024
Source : ORISHAS-FINANCE
Categories: Economy/Forex Sectors

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Le vendredi 20 septembre dernier, The Monetary Fund international (IMF) released a statement announcing that it had reached an agreement with Sierra Leone on the services level for an extended credit facility (FEC) of $253 million

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The new FEC program aims to restore stability by ensuring debt sustainability, reducing inflation, and replenishing reserves, while supporting inclusive growth through reforms, reducing gender inequalities, and targeted social spending. According to Christian Saborowski, head of the IMF's mission in the country, “a new economic team took the lead last year and has since taken bold steps to address Sierra Leone's macroeconomic imbalances, including a serious cost-of-living crisis. The authorities reduced the domestic primary deficit by 2.8% of GDP in 2023 and are on track to reduce it by a further 2.1% this year.”

One of the main objectives of the reform program will be the reduction of poverty as well as the alleviation of the inflationary pressures that continue to weigh on the economy.
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