Sierra Leone’s Ministry of Finance says the International Monetary Fund (IMF) has disbursed $20.8 million to the country’s Economic Performance Programme under the Extended Credit Facility Programme.
The West African nation is facing a barrage of financial challenges, which include high inflation, depreciation of currencies, high-interest rates, rising debt levels, and vulnerabilities.
According to data from Statista, the national debt of Sierra Leone is predicted to climb between 2023 and 2028 by a total of 2.8 billion U.S. dollars, almost a 70 per cent increase.
The national debt is estimated to amount to 6.69 billion U.S. dollars in 2028.
The IMF however accepts that Sierra Leone is in dire need of financial aid.
The financial agency said during the announcement that "Sierra Leone continues to face significant economic challenges, amplified by multiple shocks, including Russia’s war in Ukraine.’’
The IMF further added that it hopes the funds will pave the way for other international financial institutions to scale up their support towards financing Sierra Leone’s priority programmes, including human capital development.
Sierra Leone’s Ministry of Finance also announced that the government is at an advanced stage in negotiating with the World Bank to disburse 65 million United States dollars in budget support in 2023.
