By Augustine Octavius, augustineoctavius@gmail.com
The International Monetary Fund mission (IMF) to Liberia has concluded its assessment of the Liberian economy, with warning that the success of the reform agenda of the government is predicated on the adoption of a credible and executable budget for 2020 and beyond.
IMF Deputy Division Chief of the Western 11 Division of the Africa Department, Mika Saiko, disclosed that growth has slowed, received shocks have come under significant pressure and macroeconomic imbalances have increased.
Madam Saiko made the disclosure at joint press conference held held in Monrovia on Monday, June 24, 2019 with Finance and Development Planning Minister Samuel Tweah.
According to her, participation across all groups within the public sector is essential to support the reform agenda.
“Key to this is that expenditure be held to a level consistent with realistic estimates of the resources envelope so that budget execution in the coming year can proceed with predictability and efficiency,” the IMF official added.
“This is needed to support the provision of essential public services and avoid the accumulation of domestic arrears,” said Madam Seiko.
The IMF mission welcomed the new monetary policy framework developed by the Central Bank of Liberia aiming to better manage monetary conditions to achieve price stability.
In this regard, she went on, the mission expressed support for the CBL’s intension to achieve greater alignment of interest rates on its newly introduced monetary policy instruments.
Madam Saito noted that the success of the monetary policy framework will also hinge on a successful fiscal program and the elimination of additional government borrowing from the CBL.
For his part, Finance Minister, Samuel Tweah, disclosed that the government has put in place a framework aimed at wage harmonization, cut capital spending and reducing the debts owe local and international partners.
He added that the Finance Ministry will be presenting the proposed national budget to the President, George Weah, for onward transfer to the national legislature.
Minister Tweh maintained that the government has already put a halt to further borrowing from the Central Bank of Liberia thus strengthening the independence of the CBL.
Minister Tweh clarified that the salary harmonization will not affect salary deduction for teachers, health workers and security forces.
According to the minister, the government is now concentrating on investing in the agricultural sector because the import oriented economy is only providing jobs for the people in those countries that we are importing from.
Monday’s join IMF-Finance Ministry’s press conference was attended by senior officials of the Finance Ministry and the Executive Governor of the Central Bank of Liberia (CBL).