(Ecofin Agency) - The program will support reforms to address macroeconomic imbalances, strengthen debt sustainability, and promote private sector-led growth.

Yesterday, the International Monetary Fund (IMF) announced its board of directors approved a $210 million loan for Liberia. The first disbursement will be around $5.8 million, according to the statement.

This program is part of a 40-month Extended Credit Facility (ECF) aimed at supporting the implementation of economic reforms by the Liberian government. These reforms are designed to address macroeconomic imbalances, strengthen debt sustainability, and lay the groundwork for stronger, more inclusive private sector-led growth.

Key actions planned under this program include implementing new fiscal measures, such as a Value Added Tax (VAT), increasing priority public spending—especially on essential infrastructure—and enhancing financial stability by tackling the issue of non-performing loans in the banking sector.

“The Liberian authorities are appropriately prioritizing restoring fiscal credibility. They are focusing on reducing unproductive spending and shifting resources toward public investment while protecting social spending,” said Bo Li, the IMF’s Deputy Managing Director and Acting President.