Sierra Leone: Sixth and Seventh Reviews Under the Extended Credit Facility, Requests for Waivers of Nonobservance of Performance Criteria, Extension of the Arrangement, Rephasing of Disbursements, and Financing Assurances Review-Press Release; Staff R

Since the 5th review under the ECF arrangement in July 2022, macro policies have become more expansionary than expected, inflation has continued to rise, the leone has depreciated sharply and debt related risks have increased notably. Deadly floods weakened activity and highlighted climate-related risks. The risk of social unrest remains high given the soaring cost of living and record levels of food insecurity. The President appointed a new economic team in early 2023 which has begun to take decisive action to tackle these challenges. Discussions focused on recent developments as well as policy commitments to restore stability, maintain debt sustainability, and achieve program objectives.