By zainab.joaque@awokonewspaper.sl
Washington DC, USA – Staff members of the International Monetary Fund (IMF) have expressed appreciation for the productive discussions held with Sierra Leonean authorities regarding macroeconomic targets. In a statement, they announced their intention to continue these discussions over the coming months as the country prepares to embark on a successor program with the global lender.
The IMF plans to dispatch a mission to Freetown for a follow-up visit in early September, aiming to reach a staff-level agreement on the new arrangement under the Extended Credit Facility (ECF). The staff emphasized the importance of continued fiscal and monetary tightening, as well as the preservation of reserves, which they deemed critical in the interim period.
Their End-of-Mission press release on Monday, April 22, 2024, summarized the preliminary findings of the IMF staff teams following their visit to Sierra Leone and subsequent discussions held during the Spring Meetings of the IMF and the World Bank Group in Washington, DC.
Christian Saborowski and his team conducted discussions in Freetown from April 8 to 12, 2024, regarding Sierra Leone’s request for financial support under a new ECF arrangement, following the conclusion of the previous arrangement on November 20, 2023.
The Fund staff noted substantial progress in understanding the authorities’ development objectives and the reforms necessary to achieve macroeconomic stability and maintain debt sustainability. Saborowski acknowledged the significant tightening of macroeconomic policies implemented by the authorities in 2023 and the first quarter of 2024, resulting in a stable exchange rate and declining inflation.
However, he highlighted the remaining adjustments required to ensure debt sustainability, as well as the high financing needs and depletion of foreign reserves. Despite these challenges, the authorities and the staff team reached agreements on most policies to support the requested arrangement under the ECF.
Saborowski expressed gratitude to the authorities for their warm hospitality and productive discussions, underscoring the collaborative efforts to advance Sierra Leone’s macroeconomic stability and development objectives. ZIJ/23/4/2024
