Well on its way to recovery, Ebola-plagued country Liberia is getting a much needed financial boost from the International Monetary Fund (IMF). According to an IMF press release, the organization will be lending $82.1 million to assist with immediate needs and the overall balancing of finances.
A Rapid Credit Facility will account for $45.6 million of the disbursement, while $36.5 will come from the Catastrophe Containment and Relief Trust for Liberia.
The preservation of internal reserves is at the top of the list for Liberia, which will hopefully garner more aid and business confidence through the IMF’s most recent offering, the release said.
“The Ebola outbreak continues to cripple the Liberian economy, although the recent decline in new cases is welcome. Economic activity has decelerated significantly, and fiscal and external financing needs are more pronounced than envisaged at the time of the Extended Credit Facility (ECF) augmentation,” Naoyuki Shinohara, chair and deputy managing director, said.
He noted that economic recovery isn’t expected to begin taking shape until next year. Largely, the economy is struggling because of investments in infrastructure and mining that have been pulled back due to Ebola.
“Fiscal policy should continue to remain accommodative to meet spending priorities relating to the epidemic, subject to the availability of financing,” Shinohara added.
“Continued improvements in public financial management and transparency in the use of external resources will be key to unlocking further donor budget support.”
The release closed saying that a stabilized economy will come by way of keeping an eye on financial conditions, encouraged liquidity management, as well as expansive flexibility with exchange rates.