This paper discusses Sierra Leone’s Third and Fourth Reviews Under the Extended Credit Facility Arrangement and Financing Assurances Review, Requests for Waivers for Nonobservance of Performance Criteria (PC) and Modification of PC. Program implementation has been good, notwithstanding the shocks that the economy has experienced. Despite missing several end-2014 PCs, owing to the Ebola outbreak, authorities have placed policies back on track. All end-June 2015 PCs, as well as most structural benchmarks, have been observed. The IMF staff supports the authorities’ requests for waivers, as well as for additional financing from the IMF.
Catastrophe Containment and Relief (CCR) Trust.
Safeguards Assessment :
The 2015 safeguards assessment found that despite the Ebola epidemic, the Bank of Sierra Leone (BSL) has maintained essential operations and related controls. Governance bodies were reconstituted without delay, following the expiration of the previous terms, and the Audit Committee continued its oversight of BSLoperations. However, the modernization of the internal audit function, recommended by an independent external quality assessment, has not been fully completed. While financial statements
investment levels in support of the required level of growth, the authorities will facilitate and create environment for private sector development and an improved investment climate. This will improve the overall fiscal balance, with potential solvency and profitability problems in the banking system being addressed, and more attention being paid to the mobilization of longer-term resources through institutions like insurance companies and pension funds.
11. The Bank of Sierra Leone (BSL) operations are to be strengthened, especially in improving open market operations
, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.
The 2015 safeguards assessment found that despite the Ebola epidemic, the Bank of Sierra Leone (BSL) has maintained essential operations and related controls. Governance bodies were reconstituted without delay, following the expiration of the previous terms, and the Audit Committee continued its oversight of BSLoperations. However, the modernization of the internal audit function, recommended by an independent external
This paper discusses Sierra Leone’s Request for a Three-Year Arrangement under the Poverty Reduction and Growth Facility (PRGF). Sierra Leone has made considerable progress during the last PRGF-supported program toward macroeconomic stability. Macroeconomic performance was generally strong, and structural reforms sought to establish a foundation for sound public finances and the effective conduct of macroeconomic policies. There were slippages in fiscal performance in 2005, but the government took corrective actions during the last quarter of the year to bring performance in line with the budget.
rural areas. In the short-term, specific measures would be needed to address potential solvency and profitability problems in the banking system. Reforms would also focus on the mobilization of longer-term resources through suitable institutions, such as insurance companies and pension funds; specific reforms would be guided by the conclusions of the Financial Sector Assessment Program (FSAP), which is now envisioned in early 2006.
22. A number of measures would also aim at strengthening Bank of Sierra Leone’s (BSL) operations . They pertain to improving existing
This 2016 Article IV Consultation highlights that economic outcomes in Sierra Leone have deteriorated sharply over the past two years. Growth declined dramatically from 20.7 percent in 2013, to 4.6 percent in 2014, and further to –21.1 percent in 2015. The budget is under severe pressure. Between mid-2014 and end-2015, the Leone depreciated 22 percent against the U.S. dollar. Banking sector vulnerabilities have increased. Living standards have also deteriorated significantly since late 2014. The medium-term outlook is somewhat positive, with growth projected to recover to 4.3 percent in 2016, increasing gradually to about 6.5 percent by 2020.