The Côte d’Ivoire government is working to reform the security apparatus. Containing fiscal risks, strengthening revenue collection, improving public financial management, and creating a business-friendly environment, through regularization of arrears on domestic debt, are the focus of the reform agenda. Sizable debt relief as a result of reaching the HIPC completion has also provided scope for new borrowing to help finance the government’s public investment program. Progress on the structural reform agenda and macroeconomic prospects are positive.
This paper discusses key findings of the Eighth Review under the Extended Credit Facility for Liberia. Economic activity in Liberia remains on a solid upward trend. Inflation has nudged higher owing to rising international fuel prices and elevated food prices. The authorities’ immediate fiscal priorities are to contain discretionary current spending and bolster investment. All performance criteria and indicative targets under the program through December 2011 were observed. One structural benchmark for the Eighth Review was met while the other is in progress.
This paper examines Liberia’s 2001 Article IV Consultation and Overdue Financial Obligations to the IMF. Liberia’s policy performance, as well as its relations with donors and creditors, has deteriorated since the conclusion of the last Article IV Consultation and the last post-ineligibility review. Payments to the IMF have become increasingly irregular, although relations with the World Bank remain in hiatus. IMF staff proposes that the Executive Board note the intention to initiate the procedure on the suspension of Liberia’s voting and related rights in the IMF.
The civil war in Liberia has resulted in the destruction of most of its infrastructure. Executive Directors noted the weak revenue performance, the lack of progress on fiscal transparency and accountability, and the poor control and prioritization of government spending. They emphasized the need to address governance, accelerate structural reforms, increase revenue, and improve fiscal transparency. In view of all this, Executive Directors agreed that the procedure to suspend Liberia's voting and related rights in the IMF should be initiated.
Liberia has begun the long process of recovery and rehabilitation after the civil war. The government should expand its focus from near-term relief and reconstruction to a more comprehensive reconstruction and economic reform program. The government remains committed to its economic and financial program monitored by IMF staff. The continuation of an appropriately restrained monetary stance, supported by a tight fiscal position, is important to build confidence in both the central bank and the new currency, and should allow for a gradual increase in international reserves.
This report reviews Liberia’s Post-Conflict Economic Conditions and Economic Program for 2004–05. The economy of Liberia is recovering, following a sharp contraction in the second half of 2003, as a result of increasing donor support and the revival of associated manufacturing and services activities. Despite political and capacity constraints, the economic program through June 2004 was implemented successfully. The monetary program for 2004–05 aims at a broadly stable exchange rate, while accommodating a further rebound in the demand for local currency.
Intermittent civil wars have largely destroyed Liberia's physical and economic structures and the government's capacity to devise and implement policies. Executive Directors expressed concern about the weak revenue performance, lack of progress on fiscal transparency, and accountability. They emphasized the need to accelerate structural reforms, welcomed the National Transitional Government of Liberia’s resumption of regular token monthly payments to the IMF, and suggested that continued cooperation with the IMF and implementation of sound policies will facilitate the development of a Staff-Monitored Program.