By Desmond Tunde Coker
The Executive Board of the International Monetary Fund (IMF) has approved the disbursement of another US$21.13 million budget support to the Government of Sierra Leone under the current Extended Credit Facility Programme, the Fund said in a press statement on Friday.
The approval came after the completion of the Fund second review of the country’s performance under the US$172.1 million programme that was signed in November 2018. This will enable the IMF to immediately disburse US$21.13 dollars, bringing total disbursements under the arrangement to about US$63.39 million dollar.
This Programme aims to create fiscal space for development needs by strengthening revenue mobilization, containing current spending and improving the efficiency of public investment.
In his statement, the acting Chairman and First Deputy Managing Director of IMF, Mr. Geoffrey Okamoto, said Sierra Leone has been making steady progress under the Fund supported program, and that the authorities have demonstrated firm commitment to their reform agenda. He furthered that while the program’s medium-term goals remain appropriate to enable future growth and development, the onset of the global COVID19 pandemic poses significant short-term risks. He suggested that combating the economic fallout of the crisis and protecting the health and wellbeing of Sierra Leoneans should be the immediate priority.
He commended the government for the progress made so far in mobilizing domestic revenue and prudent execution of budgeted expenditures. This, he said, has stabilized domestic borrowing needs and allowed inflation pressures to ease.
He called on the authorities in Sierra Leone to prioritize additional spending to help cushion the impact of COVID19 especially in the critical and uncertain period ahead. He reaffirmed the Fund’s commitment to work closely with the Government to help address the priority health and economic needs to combat the fallout of the COVID19 pandemic.
Responding to this development, Minister of Finance Jacob Jusu Saffa expressed his delight that the reforms of the Government of President Julius Maada Bio under the New Direction agenda is receiving international commendation. “It is in the interest of Sierra Leone to have an economic Programme with the IMF and also to be on track meeting economic benchmarks and reforms of the Programme,” he said.
The Minister further stated that this disbursement will give Government the space to spend on key priorities of Government more so the COVID-19 pandemic ravaging the world. He said this is also a clear indication of the trust and confidence development partners and the international community have for the leadership of President Julius Maada Bio and the SLPP led Government.