By Politico Staff Writer
In support of Sierra Leone’s economic needs amid the global COVID-19 pandemic, the executive board of the International Monetary Fund (IMF) has under its Rapid Credit Facility (RCF) approved the disbursement of US$50.37 million aimed at cushioning the pandemic’s economic impact on the country.
The disbursement, according to the global monetary institution is to help the country meets the urgent balance of payments and fiscal needs stemming from the deep and persistent impact of the pandemic.
A press statement from the IMF noted Sierra Leone Government’s quick and decisive actions to contain COVID-19 which prevented a larger outbreak and helped saved lives and protect livelihoods. Reference was drawn to the Bank of Sierra Leone for swiftly introducing a special facility that importers were able to access thereby preventing disruption to the supply of food and essential goods. The government’s Quick Action Economic Recovery Programme was a way of responding to the crisis by scaling up health and other priority spending. Those measures they said came at an economic cost.
It added that the Containment measures disrupted the transport of goods within the country, with a heavy impact on the services sector. At the same time, exports weakened significantly in 2020 due to weaker mining production and lower global demand.
The statement quoted Tao Zhang, Deputy Managing Director and Acting Chair during the Board discussion saying, “Emergency financing from the IMF under the Rapid Credit Facility will help meet urgent external and fiscal financing needs in 2021, and ensure that the authorities can maintain their response and recovery efforts. In line with their National Development Plan priorities, they continue to strengthen governance, including transparently reporting on their COVID-19 response, and publishing details of large emergency‑related procurement contracts,” the statement reads.
The statement acknowledged the government’s policy responses to the COVID pandemic but noted that continued support from development partners will be vital to recapture pre-crisis momentum and ensure a sustainable, inclusive recovery.
The IMF presents a promising outlook for the government in Freetown saying : “Looking ahead, the authorities remain committed to maintaining macroeconomic and fiscal stability, in line with their medium-term reform program supported by the Extended Credit Facility. They are taking steps to address vulnerabilities to debt sustainability, with IMF technical assistance. Nevertheless, Sierra Leone’s large development needs and tight financing situation will require concessional support, ideally grants, from the international community in the coming years”.
Copyright © 2021 Politico Online (17/03/21)
