IMF Completes Reviews of Liberia Loan Programs

Washington, DC, September 28, 2026 - The Executive Board of the International Monetary Fund (IMF) today completed the fourth review under Liberia's 40‑month Extended Credit Facility (ECF) arrangement and the first review under the 21-month Resilience and Sustainability Facility (RSF) arrangement. The completion of the reviews enables the immediate disbursement of SDR 19.3 million (about US$26.2 million) under the ECF arrangement and SDR 17.62 million (about US$23.96 million) under the RSF arrangement. The ECF and RSF arrangements continue to support Liberia's efforts to preserve macroeconomic stability and debt sustainability, strengthen financial sector resilience, advance governance reforms, and build resilience to climate-related shocks.

Liberia's economy has remained resilient despite a more challenging external environment. Real GDP growth reached 5.1 percent in 2025 and is projected to accelerate to 5.5 percent in 2026, supported by strong mining production as well as construction and manufacturing activity. Inflation remains contained, but downside risks persist, including higher fuel prices, declining donor support, commodity price volatility, and climate-related shocks.

The authorities have maintained prudent macroeconomic policies and advanced reforms. Priorities include: (i) mobilizing domestic revenue, notably by implementing the VAT in 2027; (ii) managing the one-off mining concession payment prudently and transparently; (iii) completing bank restructuring and addressing remaining financial sector vulnerabilities; (iv) strengthening governance and fiscal transparency; and (v) advancing climate resilience reforms under the RSF arrangement.

The IMF Executive Board approved Liberia's ECF arrangement on September 25, 2024, with access of SDR 155 million (60 percent of quota) to support the authorities' efforts to restore macroeconomic stability, preserve debt sustainability, safeguard financial stability, and strengthen governance. Total disbursements under the arrangement have reached SDR 96.5 million (about US$131.67 million). The Board subsequently approved Liberia's

RSF arrangement on April 27, 2026, with total access of SDR 193.8 million (about US$265 million).

Following the Executive Board discussion, Mr. Bo Li, Acting Chair and Deputy Managing Director, made the following statement:

"The authorities have continued to implement sound policies, allowing them to make significant progress under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF) arrangements. Despite heightened global risks, primarily stemming from elevated and volatile oil prices, Liberia's economic performance has remained satisfactory.

Fiscal consolidation has continued, supported by strong revenue performance, which has helped to reduce debt vulnerabilities. Capital expenditure has accelerated. Further progress is needed to rationalize unproductive expenditures to create additional fiscal space for priority infrastructure projects, while preserving fiscal discipline.

Combined with mining taxation reform and the rationalization of tax exemptions, a successful rollout of the VAT will generate steady revenues to finance priority investments. The authorities' intention to phase the use of the mining windfall resources over 2026-27 is appropriate given implementation capacity constraints. Enhancing selection, implementation, and monitoring of capital projects will be essential to raising the quality of public spending and boosting growth potential.

The Central Bank of Liberia will continue to monitor price developments closely and stands ready to tighten monetary policy to contain inflationary pressures from elevated global oil prices. Bank recapitalization is progressing, though more slowly than planned. Accelerating the reduction of non-performing loans would strengthen bank balance sheets and support private sector credit growth. Issuing new banknotes is an immediate priority to alleviate current shortages.

Publishing the governance diagnostic report and implementing a focused action plan would signal to development partners the authorities' firm commitment to addressing institutional weaknesses and combating corruption. Removing legal barriers to publishing all public officials' asset declarations would further strengthen transparency and accountability.

Initial progress on climate-related reforms is encouraging. Continued technical assistance and close coordination with development partners will be critical to implementing the identified measures on schedule. Together with reforms under the ECF, these measures will strengthen economic resilience and mitigate balance-of-payments risks."