The International Monetary Fund approved $50.2 million in new financing for Liberia and urged the government to cut unproductive spending to free resources for priority infrastructure projects.
The disbursement, approved after reviews of Liberia’s programs under the Extended Credit Facility and Resilience and Sustainability Facility, includes $26.2 million from the ECF and $24 million from the RSF.
The IMF said stronger government revenue has helped Liberia consolidate its finances, reduce debt vulnerabilities and accelerate capital spending. But it called for tighter control of unproductive expenditures while improving the selection and implementation of public investment projects.
Liberia’s economy grew 5.1% in 2025 and is projected to expand 5.5% this year, supported by mining, construction and manufacturing, the IMF said.
The government plans to introduce value-added tax in 2027, reform mining taxation and rationalize tax exemptions. A successful VAT rollout would provide steady revenue to finance priority investments, IMF Acting Chair and Deputy Managing Director Bo Li said.
The fund also supported Liberia’s decision to spread a one-off mining concession payment across 2026 and 2027 because of constraints on the government’s ability to implement projects.
Improving project selection, execution and monitoring will be critical to ensuring public spending translates into stronger growth, the IMF said.
The latest financing comes as Liberia faces risks from volatile global oil prices. The Central Bank of Liberia is prepared to tighten monetary policy if higher oil costs push up inflation.
The banking sector remains under pressure, with recapitalization advancing more slowly than planned and non-performing loans weighing on bank balance sheets and private-sector credit. The IMF also identified new banknotes as an immediate priority amid continuing shortages.
The fund called for publication of Liberia’s governance diagnostic report and an action plan to address corruption and institutional weaknesses. Removing legal barriers to publishing public officials’ asset declarations would strengthen transparency and accountability, it said.
Total ECF disbursements have reached about $131.7 million, while the RSF provides Liberia access to about $265 million for reforms aimed at strengthening resilience to climate-related shocks.
