Liberia: Ad Hoc Review Under the Extended Credit Facility Arrangement and Request for Augmentation of Access and Modification of Performance Criteria

IMF Staff Country Reports, September 29, 2014

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Liberia recorded the highest number of new and cumulative Ebola cases to date and is the country most affected by the epidemic in West Africa.
The Ebola outbreak is exacting a heavy human toll and is having a severe economic and social impact that could jeopardize gains from a decade of peace.
The largest sectors of the economy—agriculture, services and mining—have been weakened by the epidemic, resulting in significant financing gaps for the fiscal and external accounts.
Closure of international borders and internal quarantines are disrupting labor and food supply, leading to shortages of basic commodities, depreciation pressures and higher inflation.

The authorities request an ad-hoc augmentation of access under the Extended Credit Facility (ECF).
The authorities request an immediate additional disbursement of SDR 32.3 million, equivalent to 25 percent of quota, to help bridge the significant financing need emerging from the outbreak.
The authorities request modification of end-December performance criteria to allow on-lending of the equivalent of the Fund support to the government.

Staff supports the authorities’ request for an augmentation of access and immediate disbursement in light of the urgency and size of the balance of payments need.
Staff supports the requested modification of end-December 2014 performance criteria via a program adjustor to allow the on-lending of the additional Fund support to the government.

The third ECF review was concluded on July 3, 2014.
Available information indicates that the program remains on track and that continuous performance criteria are being met.

The proposed augmentation would complement assistance committed by other stakeholders including US$19 million in additional budget support from the African Development Bank and the World Bank.
The proposed augmentation is expected to help catalyze support from other donors.
The authorities have committed to take the necessary measures to address any residual financing gap.