By zainab.joaque@awokonewspaper.sl
Washington DC, USA – Central banks, given their pivotal roles in maintaining monetary stability and serving societal needs, must ensure the effective management of funds to meet broader economic objectives. Reflecting this commitment, the Bank of Sierra Leone engaged in discussions with the Finance Department of the International Monetary Fund (IMF) on Thursday, April 18, 2024, to explore safeguards and governance frameworks crucial for financial stability.
Speaking to Awoko Newspaper at the Spring Meetings in Washington DC, Bank Governor Ibrahim L. Stevens emphasized the significance of the meeting with the IMF’s Finance Department, responsible for fiduciary oversight and safeguards review. These discussions, he noted, form an integral part of the IMF’s due diligence process, ensuring that countries receiving IMF assistance have robust governance mechanisms in place, particularly within their central banks.
Governor Stevens underscored the importance of IMF safeguards assessments, mandated by the Fund’s Articles of Agreement to ensure the prudent use of resources. He revealed that a recent IMF mission to Sierra Leone conducted an assessment, with the final report currently in the finalization stage. While the assessment remains confidential, Governor Stevens expressed satisfaction with the productive discussions held during the Spring Meetings.
These discussions, Governor Stevens explained, complement the ongoing dialogue with the IMF’s African Department regarding Sierra Leone’s request for a new Extended Credit Facility (ECF) program. Noting the necessity of the safeguards report for advancing the new program, Governor Stevens anticipates receiving the formal report within a month, followed by the Bank’s response, which will inform the program’s structural benchmarks.
Reflecting on past ECF experiences, Governor Stevens highlighted the successful conclusion of the previous program, emphasizing the country’s compliance with agreed criteria. He assured that ongoing negotiations for the new ECF are progressing well, with promising developments expected by September 2024, culminating in a Board decision in October.
In addressing safeguards, Governor Stevens reiterated their importance in ensuring timely loan repayments, thereby facilitating access to funds for other member countries in need. Safeguards encompass various measures, including borrowing limits, loan conditions, and mechanisms to address misreporting and arrears, alongside assessments of central bank operations.
As Sierra Leone navigates discussions on the new ECF program and reinforces its financial safeguards, Governor Stevens remains optimistic about the country’s economic trajectory, underlining the collaborative efforts with international partners to ensure sustainable economic growth and stability. ZIJ/19/4/2024