The International Monetary Fund’s Executive Board approved a new 21-month Resilience and Sustainability Facility (RSF) arrangement for Liberia totaling SDR 193.8 million (about USD 266 million, 75 percent of quota) and completed the third review under Liberia’s existing Extended Credit Facility (ECF) arrangement. Completion of the review enables an immediate ECF disbursement of SDR 19.30 million (about USD 26.49 million), bringing total disbursements under the ECF to SDR 77.2 million (about USD 105.96 million). The RSF financing is intended to support the authorities’ efforts to strengthen macroeconomic resilience by building buffers against climate shocks, including through climate adaptation measures and enhanced pandemic preparedness. The ECF program (SDR 155 million, 60 percent of quota, approved on 25 September 2024) continues to focus on restoring macroeconomic stability, ensuring debt sustainability, safeguarding financial stability, and strengthening governance, against a backdrop of 5.1 percent growth in 2025 driven largely by mining and projected to remain at 5.1 percent in 2026, with downside risks highlighted from higher oil prices and lower bilateral assistance. Policy priorities flagged include further fiscal adjustment and expenditure reallocation, temporary targeted public transport subsidies and higher social spending under a supplementary budget, domestic revenue measures such as a planned value-added tax rollout in 2027 alongside mining tax reform and reduced exemptions, accelerated restructuring of weak banks with tighter financial regulation and lower non-performing loans, and governance steps including strengthening the Liberia Anti-Corruption Commission and publishing asset declarations.

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