Yesterday, the Executive Board of the International Monetary Fund (IMF), announced that it has approved the disbursement of SDR36.17 million (US$50 million – equivalent to 1.7 percent of the country’s GDP) to be drawn under the Rapid Credit Facility (RCF) in support of the Liberian government’s response to the COVID-19 pandemic.
The pandemic opens a balance of payment need of US$150 million (5.1 percent of GDP) in 2020, which largely arises from a domestic revenue shortfall projected at US$119 million.”
The authorities are addressing these weaknesses, aiming to bring the program back on track in time to complete the first review, but are faced with the challenging task of managing the COVID-19 crisis at the same time.”
Following the decision to approve the disbursement, Mr. Tao Zhang, Deputy Managing Director and Acting Chair of the IMF, said:
“The COVID-19 pandemic came at a time when a consensus on the need for broad-based reform in Liberia had finally emerged, but when macroeconomic conditions remained challenging.
Two days ago, the IMF approved disbursement of $143 million to help the government of neighbouring Sierra Leone manage the economic impact of the COVID-19 pandemic, which the Bio-led government says will cost over $300 million to address.
