The Executive Board of the International Monetary Fund (IMF) is expected to meet on 30th November 2018 to approve a new economic program for Sierra Leone after it suspended the last program in December 2017.
In anticipation of the approval of the new Extended Credit Facility (ECF), which is a 43-month program worth $171.6 million USD, a Memorandum of Understanding (MoU) on the Treatment of Fund Resources for Budget Financing under the IMF has been signed between the Ministry of Finance (MoF) and the Bank of Sierra Leone (BSL).
The signing, which took place on Monday 26th November 2018, outlined the terms and conditions of the budgetary support disbursement, proper accounting and debt service implications including foreign exchange liability, interest and charges.
According to the MoU, of this amount, $35.77 million USD) is to support the government budget with additional fiscal needs projected for 2018 and 2019 $21.77 million USD on program approval that is expected to be disbursed in December 2018 and another $14 million USD on the completion of the programs’ first review in June 2019.
The MoU further indicates that the Leones equivalent of budget support will be credited directly to the Ministry of Finance through the Government of Sierra Leone’s dedicated account, namely “IMF Budget Financing Account of GoSL” at the Bank of Sierra Leone.
Acting Minister of Finance, Patricia Laverley, said after a series of negotiations and several reforms around the economy, the fund and the government of Sierra Leone are on the verge of forging ahead with the new program.
“The Government is also expected more budgetary and other support from other multilateral and donor partners to provide funding and other support.” she hoped