(Ecofin Agency) - Liberia will benefit from $48.8 million in aid from the International Monetary Fund. In an official statement published last Dec 21, the institution said the money will be used to cut the country’s budget deficit.

The disbursement follows the completion of the first and second review under the extended credit facility for the country. For overall financing of $214.30 million, this facility is designed to revive the sluggish economy and accelerate economic reforms.

The covid-19 pandemic greatly increased the challenges already faced by Liberian authorities. Economic activity slowed as the budget deficit widened. Growth is now expected to be -3 percent, compared to the initial forecast of 1.4 percent. “The COVID-19 pandemic continues to exert significant strain on Liberia’s fragile economy. The authorities have taken the necessary steps to stabilize the economy amid multiple challenges. A modest fiscal loosening is appropriate to meet humanitarian needs during the COVID-19 pandemic,” said Tao Zang, IMF deputy MD.

More than half of the new disbursement to the country of George Weah (pictured) will be used to fill the fiscal financing gap resulting from the impact of covid-19. For 2021, the IMF expects growth to resume at 3.2 percent.

Moutiou Adjibi Nourou