• IMF approves $26.5M for Liberia under credit program

• Funds support debt reduction, stability, and governance reforms

• Liberia urged to boost domestic revenue, maintain fiscal discipline

The International Monetary Fund (IMF) has approved a $26.5 million disbursement to Liberia after completing the second review of the country’s Extended Credit Facility (ECF). The funds are intended to help restore macroeconomic stability, reduce debt risks, safeguard financial stability and strengthen governance, the IMF said on Wednesday, October 1, 2025.

This brings total disbursements under the 40-month program, launched in September 2024, to $79.4 million.

“The authorities have made notable progress in implementing sound macroeconomic policies and key structural reforms in the first year of their Fund-supported program. Measures to reduce the large fiscal deficit, mitigate debt vulnerabilities, and strengthen foreign exchange reserves have yielded encouraging results,” the IMF said. 

The Fund also noted Liberia’s quick policy response to the abrupt end of major U.S. grant support. Measures such as cutting low-priority spending and boosting domestic revenue helped protect social programs once funded by USAID.

Looking ahead, the IMF urged Liberia to raise more domestic revenue to fund development, including through higher VAT, income tax reforms and fewer exemptions. It stressed that fiscal discipline and better public spending remain critical amid global uncertainty.

The IMF projects Liberia’s economy will grow 4.6% in 2025 and accelerate to 5.4% in 2026, driven by mining—especially gold and iron ore—and a rebound in agriculture.

Ingrid Haffiny