| Summary: | "Against the background of challenging economic and social conditions, Sierra Leone has been making progress since the end of the civil conflict in 2002. The economy has been growing at a solid pace, inflation has been trending down, and sociopolitical stability is taking hold. Going forward, the authorities need to strengthen policy implementation particularly in the fiscal area to entrench macroeconomic stability, support private sector development and job creation, and develop social policies to protect the most vulnerable groups in the population. Consultation focus. Policy discussions focused on fiscal consolidation and public financial management reforms; monetary policy and price stability; borrowing policies and long-term debt sustainability; private sector development and structural reforms to enhance inclusive growth. Staff views. Staff recommends the approval of the authorities' request for a three-year arrangement under the Extended Credit Facility (ECF) in an amount of SDR 62.22 million (60 percent of quota). In May 2013, the authorities decided to cancel the three-year ECF arrangement approved by the Board in June 2010 because key objectives under the program supported by the arrangement were no longer achievable. The new arrangement is aimed at supporting the authorities' efforts to consolidate macroeconomic stability, strengthen the fiscal position, build external buffers, and promote broad-based economic growth in the context of their new Poverty Reduction Strategy (PRS). Safeguards assessment. The latest safeguards assessment was updated in 2010. The next update will be completed by the time of the first review of the proposed ECF arrangement. The new Poverty Reduction Strategy. The Joint IMF-World Bank Staff Advisory Note on the new PRS will be circulated to the Board in early November"--Abstract.
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