Sierra Leone has secured a new loan agreement from the International Monetary Fund (IMF).
The IMF board has approved a new $172 million loan programme for the West African nation struggling to deal with a weakening economy.
Sierra Leone is currently battling a rising inflation and slow economic growth.
In 2017 the Executive Board of the IMF approved a three-year arrangement under the Extended Credit Facility (ECF) for Sierra Leone for about US$224.2 million.
That was to support the country’s economic development but it was suspended in February this year due to delays in rolling out reforms.
The IMF said in a statement that “the objectives of the previous program remain appropriate, but circumstances call for a recalibration”.
It said “the main objectives of the current program are to safeguard macroeconomic stability, deepen structural reforms, and advance the country’s education for development and poverty reduction agendas.”
Sierra Leone has been classified as a “high risk” country for debt distress due to current slow economic growth.
Despite recovering from a devastating civil war in 2002, Sierra Leone witnessed an economy downturn following the Ebola outbreak.
The epidemic led to economic growth decline which means Sierra Leone had to start all over again in rebuilding its economy.