Liberia will benefit from SDR36.17 million ($50 million) approved by the International Monetary Fund on June 5 under the Rapid Credit facility signed with the country. The resources will be used to meet the urgent balance of payment needs ($150 million, 51% of the GDP) and the urgent budget needs stemming from the coronavirus pandemic.

In addition to the health crisis caused by the pandemic, the restriction and lockdown measures initiated by the government to control the propagation of the virus have worsened the situation, harming domestic demand, net remittances, capital inflows, and the banking sector.

“The pandemic is expected to hit Liberia hard, and will likely disproportionately affect the most vulnerable, as social safety nets are rudimentary, food insecurity is rising, and the healthcare system is underdeveloped,” said Tao Zhang (pictured), IMF Managing Director and Acting Chair.

Liberia’s economic growth is expected at -2.5% this year, roughly the same level as 2019, according to the IMF.

André Chadrak