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MONROVIA, — The International Monetary Fund’s Executive Board has approved approximately $266 million in additional financing for Liberia under its Resilience and Sustainability Facility, a move the Liberian government says will support climate adaptation, pandemic preparedness, and macroeconomic stability.
The 21-month RSF arrangement, valued at SDR 193.8 million, was announced by the IMF on April 27. According to the Fund, Liberia’s economy grew 5.1% in 2025, driven largely by expanded mining production. The IMF said the political environment remains “supportive of reforms” under the government’s ARREST Agenda for Inclusive Development.
Terms and Purpose of RSF
The RSF will fund climate adaptation efforts, resilient infrastructure, and pandemic preparedness. It is also intended to help catalyze external financing and provide balance of payments support to the Central Bank of Liberia, in coordination with other development partners.
Disbursements under the $266 million facility will occur over 21 months, subject to the government meeting “appropriate triggers for the disbursement for a specific tranche,” Finance and Development Planning Minister Augustine Kpehe Ngafuan said in a statement Monday.
IMF Comments on Fiscal Policy
Following the Board discussion, IMF Acting Chair and Deputy Managing Director Bo Li said Liberia has maintained sound macroeconomic policies and made progress on structural reforms. “Fiscal adjustment has helped reduce debt vulnerabilities. Expenditure rationalization has supported the reallocation of resources toward priority investment projects and critical social programs, but further progress is needed in this regard,” Li said.
Li noted that authorities have introduced “temporary and targeted subsidies to support public transportation” to mitigate the impact of elevated oil prices. He added that a recently adopted supplementary budget will allow higher allocations to social spending while preserving fiscal discipline.
Government Reaction
Minister Ngafuan welcomed the Board’s decision, saying the process to qualify for the RSF began in October 2024. “To qualify for the RSF, we took many measures and met many benchmarks and indicators, proving worthy of the IMF’s support,” he said. He thanked President Joseph Nyuma Boakai for his leadership and credited the Liberia mission team and IMF Board for their partnership.
Ngafuan said the approval “reflects growing international confidence in Liberia’s reform trajectory” and will support reforms aimed at strengthening macroeconomic stability, enhancing climate resilience, and improving institutional capacity.
During recent IMF/World Bank meetings in Washington, D.C., Ngafuan briefed IMF officials on the potential economic impact of the ongoing Middle East crisis on Liberia and outlined government measures to mitigate external shocks.
ECF Review and Disbursement
Separately, the IMF Board concluded the third review of Liberia’s 40-month Extended Credit Facility arrangement, enabling an immediate disbursement of $26.49 million. Total disbursements under the ECF now stand at about $105.96 million.
The ECF arrangement, totaling $223 million, was approved on September 25, 2024, to support the government’s program to restore macroeconomic stability, ensure debt sustainability, safeguard financial stability, and strengthen governance.
The government said it remains committed to “sustaining reform momentum, strengthening economic governance, and leveraging international partnerships to drive inclusive growth and long-term national development.”
