IMF approves $25 million disbursement

The executive board of the International Monetary Fund announced its approval a US $25 million disbursement for Sierra Leone under its Poverty Reduction and Growth Facility on Thursday. Having completed its second review of the country's performance under the PRGF arrangement, the board granted Sierra Leone a waiver on its performance criteria and opened the way for the low-interest loan, according to an IMF press release. Sierra Leone's PRGF arrangement was approved on September 2001, and some $172 million made available by the IMF. So far, the country has drawn down about $74 million of that amount, the statement added. "Economic reforms under Sierra Leone's PRGF-supported programme have been making commendable progress, despite major institutional and financial constraints," said Eduardo Aninat, IMF's Deputy Managing Director and acting chairman. "This, together with the crucial setting of an improved security situation, has helped sustain the economic recovery and keep economic growth," he said. "A strong effort would be required to maintain macro-economic stability in light of large pending demands on budgetary resources for social priorities," he added. Noting that Sierra Leone had made marked progress in advancing the peace process, Aninat said peace remained "fragile-buffeted by instability" in the region. There were daunting social challenges to be addressed, including reintegrating ex-combatants, supporting the resettlement of the previously displaced population and caring for war victims, he said. "Sierra Leone will continue to require substantial financial and technical support from the international community to consolidate peace and to address the daunting challenges in the period ahead, including the resettlement of the displaced population and the reconstruction of the economy," the IMF director added.