The International Monetary Fund said on Tuesday it had reached a staff-level agreement with Liberia on the third review of the country’s Extended Credit Facility (ECF) programme, alongside a separate agreement on Liberia’s request for access to the IMF’s Resilience and Sustainability Facility (RSF).
An IMF mission led by Daehaeng Kim held discussions in Monrovia from January 7 to 20, focusing on Liberia’s economic reform agenda and macroeconomic performance. Consideration by the IMF Executive Board is tentatively scheduled for early March 2026, subject to management approval.
Liberia’s ECF arrangement was approved in September 2024, providing access to SDR 155 million (about $210 million) over a 40-month period. The proposed RSF arrangement would provide additional access of SDR 193.8 million (about $265 million) through the end of 2027, aimed at strengthening resilience to climate-related shocks and improving pandemic preparedness.
In a statement issued at the end of the mission, Kim said Liberia’s macroeconomic stability continued to improve, supported by strong economic activity, a sharp decline in inflation and a stable exchange rate. Programme performance since the second review was described as “relatively strong”.
Real gross domestic product growth is estimated at 5.1 percent in 2025, up from 4.0 percent in 2024, driven mainly by robust mining activity and moderate expansion in agriculture and services. Inflation eased significantly, averaging 4.4 percent in the fourth quarter of 2025, compared with 12.5 percent in the first quarter of the year. The exchange rate remained broadly stable, with some seasonal appreciation observed toward the end of 2025.
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Fiscal performance also improved, according to the IMF. The primary fiscal balance, excluding grants, is estimated to have strengthened from a surplus of 1.3 percent of GDP in 2024 to 1.4 percent of GDP in 2025, exceeding the programme target of 1.1 percent of GDP.
The IMF said continued reform implementation would be critical to consolidating macroeconomic stability, reducing debt vulnerabilities and strengthening the banking sector. Prudent fiscal policies, supported by enhanced domestic revenue mobilisation and improved public financial management, were described as essential to creating fiscal space for development priorities while allowing steady accumulation of foreign exchange reserves.
The Fund also stressed the importance of strengthening monetary policy transmission to safeguard price stability and called for decisive action to reinforce the regulatory framework and implement outstanding banking-sector reforms to preserve financial stability.
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The proposed RSF programme is expected to support Liberia’s longer-term reform agenda through three strategic pillars: disaster risk management and pandemic preparedness; climate finance and governance; and water and food security. The IMF said the facility would help build institutional capacity, strengthen resilience to external shocks and catalyse additional climate-related financing from development partners.
The staff-level agreements reflect preliminary findings and do not represent a final decision by the IMF’s Executive Board. Formal approval will depend on the completion of agreed prior actions and board consideration in the coming weeks.
During the mission, IMF staff met with President Joseph N. Boakai, senior members of the National Legislature, Finance and Development Planning Minister Augustine K. Ngafuan, Central Bank Governor Henry F. Saamoi, other government officials and representatives of development partners.
Liberia remains one of several low-income countries seeking to balance fiscal consolidation with growth and climate resilience, as external financing conditions tighten and exposure to climate-related risks increases.
