Liberia Gets US$50 Million IMF Disbursement to Bolster Reserves

Broad Street in central Monrovia, Liberia’s capital (file photo, 2010). (Photo: nickfraser, CC BY-SA 2.0, via Wikimedia Commons)

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LIBERIA · ECONOMY

The International Monetary Fund (IMF) has cleared about US$50.16 million for Liberia after two reviews on Monday 28 September 2026. The IMF disbursement rewards the West African country for sticking to a reform programme the Fund has backed since 2024.

Liberia’s government says the money is not direct budget support and will mostly strengthen reserves at the Central Bank of Liberia. For investors and visitors abroad, the review is a useful check on how stable the country’s money and public finances are.

What the IMF Board Approved

The board completed the fourth review of Liberia’s 40-month Extended Credit Facility (ECF), a soft IMF loan for poorer countries. It also completed the first review of a 21-month Resilience and Sustainability Facility (RSF), which funds climate-resilience reforms.

Each completed review releases a new slice of money. This time the ECF pays SDR 19.3 million (about US$26.2 million), and the RSF SDR 17.62 million (about US$23.96 million).

The SDR, or special drawing right, is the IMF’s own unit of account, based on a basket of major currencies. The US dollar values for these SDR amounts are the IMF’s own conversions.

The board approved the ECF on 25 September 2024, with access of SDR 155 million, or 60% of Liberia’s IMF quota. That was about US$210 million at the time.

With this payment, ECF disbursements total SDR 96.5 million (about US$131.67 million), roughly 62% of the arrangement. The climate facility, approved on 27 April 2026, is larger, at SDR 193.8 million (about US$265 million).

Why the Fund Is Satisfied

The IMF disbursement follows a solid run for the economy. According to the IMF, real GDP grew 5.1% in 2025 and should expand 5.5% in 2026.

Strong mining production leads the way, helped by construction and manufacturing. It is the same mining-led growth pattern that carried the economy in 2025.

Deputy Managing Director Bo Li, who chaired the board discussion, said Liberia’s performance “has remained satisfactory” despite “elevated and volatile oil prices”. He added that “fiscal consolidation has continued, supported by strong revenue performance, which has helped to reduce debt vulnerabilities.”

Fiscal consolidation means narrowing the gap between what the state spends and what it collects. Li said capital spending on long-term projects has accelerated, and he wants cuts to unproductive spending to free room for priority infrastructure.

Inflation remains contained, the IMF says. In late July its staff put the first-half 2026 average at 4.5% and expected 6% in the coming months.

What the IMF Wants Next

The Fund lists five priorities. First, Liberia should raise more revenue at home, notably through a value-added tax (VAT) in 2027.

Second, it should manage a one-off mining concession payment prudently and transparently. Li called the plan to spread that windfall over 2026 and 2027 appropriate, given limited capacity to run projects.

The other three are finishing bank restructuring, improving governance and fiscal transparency, and advancing climate reforms under the RSF. Bank recapitalisation is progressing “more slowly than planned”, Li warned.

He wants faster cuts in non-performing loans, meaning loans that borrowers have stopped repaying. That would strengthen banks and help them lend more to private businesses.

“Issuing new banknotes is an immediate priority to alleviate current shortages,” Li said. He also urged Liberia to publish its governance diagnostic report and act on it.

What It Means for US Readers

For investors, the IMF disbursement shows the Fund still backs Liberia’s policies. The government says the money will add to central bank reserves.

Mining companies should note that the Fund pairs the VAT with mining tax reform and fewer tax exemptions. Firms that rely on exemptions should watch that process closely.

For travellers, the banknote shortage is the practical point. Liberian and US dollars are both in daily use, as the Liberia Explained 2026 guide sets out.

The IMF says Liberian banknotes are currently in short supply, and it has not given a date for new ones.

For policy watchers, the Fund names declining donor support as a risk to Liberia’s outlook. It also says removing legal barriers to publishing all public officials’ asset declarations would strengthen transparency and accountability.

What Is Not Known

The IMF does not say how large the one-off mining concession payment is or which company made it. Nor does it say how much of this IMF disbursement will stay in the central bank’s reserves.

The IMF gives no figure for the new banknotes, and no exact start date or rate for the VAT.

It also leaves open whether the central bank will need to tighten monetary policy. The bank stands ready to do so if oil prices push inflation up, the IMF says.

What Comes Next

About SDR 58.5 million (roughly US$80 million at the IMF’s conversion rate used above) of the ECF remains to be drawn. Each further IMF disbursement depends on Liberia passing future reviews.

Finance Minister Augustine Kpehe Ngafuan called the approval “a vote of confidence” in President Joseph Boakai’s leadership. “We will make sure that there will be no reversals in the gains that have been made,” he said.

More: Africa news in English, every day from The Rio Times.

How much money did the IMF release for Liberia?

About US$50.16 million in total. The IMF disbursement combines about US$26.2 million from the Extended Credit Facility and US$23.96 million from the Resilience and Sustainability Facility.

When was the IMF disbursement for Liberia approved?

The IMF Executive Board completed the two reviews on Monday 28 September 2026. That made the money available immediately.

Is the money budget support for Liberia’s government?

No, according to the Liberian government. It says the IMF disbursement will mostly strengthen international reserves at the Central Bank of Liberia.

How fast is Liberia’s economy growing?

The IMF says real GDP grew 5.1% in 2025 and projects 5.5% for 2026. Mining production is the main driver, helped by construction and manufacturing.

What does the IMF want Liberia to do next?

Introduce a value-added tax in 2027, manage a one-off mining payment transparently and finish restructuring weak banks. It also wants stronger governance, climate reforms and new banknotes to ease shortages.

Sources: IMF, Press Release No. 26/309, Executive Board completes fourth ECF review and first RSF review for Liberia, 28 September 2026; IMF, Press Release No. 24/342, Executive Board approves forty-month US$210 million Extended Credit Facility arrangement for Liberia, 25 September 2024; IMF, staff-level agreement statement on Liberia’s fourth ECF review and first RSF review (via APO Group), 29 July 2026; The New Dawn, IMF Approves US$50.16M for Liberia, 2 October 2026; Liberian Observer, report on the US$50.16 million IMF approval, 2 October 2026.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief

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