FREETOWN: The International Monetary Fund (IMF) board has approved a new $172 million loan program for Sierra Leone to help the West African country combat rising inflation and lacklustre economic growth.
The 43-month agreement follows a previous $240 million financing plan that was suspended in February over foot-dragging on reforms such as taxing luxury car imports, and removing subsidies on fuel and rice.
“The objectives of the previous program remain appropriate, but circumstances call for a recalibration,” the IMF said in statement.
“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.”
After recovering from a civil war ending in 2002, the country saw impressive growth but its economy was then battered by an Ebola epidemic and falling commodity prices. Economic growth has declined from 6.3 percent in 2016 to an estimated 3.75 percent this year.
The IMF has reclassified Sierra Leone as a “high risk” for debt distress as a result of the economic slowdown.
“The economic environment remains challenging, with output growth still recovering from the recent loss in iron ore mining and reduced activity in the non-mining sectors,” IMF representative Brian Aitken said during a visit to Sierra Leone in October.
IMF agrees new loan program for Sierra Leone
IMF agrees new loan program for Sierra Leone
Free trade negotiations between GCC, India mark new phase of partnership, says sec-gen
RIYADH: The Gulf Cooperation Council’s secretary-general affirmed that the negotiations for a free trade agreement between the GCC and India, and the signing of the joint statement, represents a new phase of strategic partnership.
Jasem Mohamed Al-Budaiwi said that this contributes to enhancing close cooperation and strengthening economic and trade ties, according to the Saudi Press Agency.
This came during the signing ceremony of the joint statement on launching the free trade agreement negotiations between the Al-Budaiwi and India’s Minister of Commerce and Industry, Piyush Goyal, which took place in New Delhi, on Tuesday.
During the signing ceremony, Al-Budaiwi said that the Terms of Reference, signed on Feb. 5, provide a comprehensive and clear framework for these negotiations. The two nations agreed to discuss enhancing cooperation in vital strategic areas, including trade in goods, customs procedures, and services.
Additionally, the framework covers Sanitary and Phytosanitary measures, intellectual property rights, cooperation on Micro, Small, and Medium Enterprises, along with other topics of mutual interest. This reflects the comprehensive nature of the agreement and its ability to keep pace with the future economy.
Al-Budaiwi expressed hope that these negotiations would lead to a comprehensive and ambitious free trade agreement that works to remove customs and non-customs barriers, enhance the flow of quality investments in both directions, and achieve further liberalization in trade and investment cooperation between the GCC and India for mutual benefit.
This would provide a stimulating economic environment and an investment climate that opens broad horizons for the business sector, supports supply chains, and accelerates the pace of economic growth in line with the ambitious developmental visions of the GCC states.
The top official affirmed the full readiness of the General Secretariat to host the first round of negotiations at its headquarters in Riyadh during the second half of this year.
The two sides held a meeting during which they reviewed the existing cooperation relations between the GCC and India and discussed ways to develop and elevate them to broader horizons, serving mutual interests and enhancing opportunities for strategic partnership between the two sides, particularly in the economic, investment, and trade fields.
They praised the role undertaken by the negotiating teams from both sides, appreciating the efforts contributing to reaching a comprehensive agreement that enhances economic integration and supports the smooth flow of trade between the two nations.
