Sierra Leone: IMF approves $172m loan

FREETOWN: The International Monetary Fund (IMF) board has approved a new $172-million loan programme for Sierra Leone to help the West African country combat rising inflation and lacklustre economic growth. The 43-month agreement follows a previous $240-million financing plan that was suspended in February over foot-dragging on reforms such as taxing luxury car imports and removing subsidies on fuel and rice. “The objectives of the previous programme remain appropriate, but circumstances call for a recalibration,” the IMF said in a statement. “The main objectives of the current programme are to safeguard macroeconomic stability, deepen structural reforms and advance the country’s education for development and poverty reduction agendas.” Economic growth of the country declined from 6.3% in 2016 to an estimated 3.75% this year. The IMF has reclassified Sierra Leone as a “high risk” for debt distress as a result of the economic slowdown.  

Published in The Express Tribune, December 2^nd, 2018.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.