[{"bbox": [140, 153, 1134, 312], "category": "Text", "text": "The 6th review of the ECF took place in July 2023 and was never finalized due to a lack of data during the electoral period. The last ECF ended in December 2023 without achieving the expected results. The final disbursement was not made, and the programme was not extended by 6 months as initially foreseen. Major setbacks such as difficulties in repaying external debt, accumulation of arrears, failure to reduce tax exemptions and duty waivers, resumption of monetary financing by the Central Bank of Liberia and insufficient foreign currency reserves, despite IMF financial assistance, motivated this decision."}, {"bbox": [140, 324, 1134, 405], "category": "Text", "text": "The new Government immediately reached out to the IMF and an agreement was made for a possible new ECF programme to start in the summer 2024, contingent upon meeting certain conditions. A mission from IMF took place late June-early July 2024."}, {"bbox": [140, 417, 1134, 497], "category": "Text", "text": "Based on official IMF and WB analyses, the Liberian authorities were pursuing a stability-oriented macroeconomic policy until 6 months before the elections, and it is expected that they will resume this approach under the new Government."}, {"bbox": [140, 508, 1134, 589], "category": "Text", "text": "**In conclusion, the new administration is making efforts to maintain macroeconomic stability and the eligibility criterion is assessed as met. However, agreeing on a new programme with the IMF is expected to provide additional assurance in this respect.**"}, {"bbox": [130, 614, 507, 643], "category": "Section-header", "text": "### 2.3.3 Public Financial Management"}, {"bbox": [140, 669, 1134, 803], "category": "Text", "text": "The PFM Strategy and Action Plan PFMRSAP 2023-2026 was initially approved in December 2023, but was subject to a revision following the government change. AFRITAC2 played a key role in this revision, aiming to make the document more strategic and streamlined. The updated strategy is expected to improve DRM, strengthen financial control and enhance public finance accountability. Additionally, the new Government is about to approve a new DRM strategy drafted by the LRA."}, {"bbox": [140, 814, 1134, 918], "category": "Text", "text": "Based on progress achieved since 2016, the Public Expenditure and Financial Accountability (PEFA) performed in 2020 acknowledged positive outcomes for Liberia. Still, the assessment scored Liberia a C⁴, indicating “basic PFM performance”. The assessment highlighted many challenges that remain to be addressed:"}, {"bbox": [140, 921, 834, 947], "category": "List-item", "text": "- Weak DRM, both in terms of reaching sources and operational systems;"}, {"bbox": [140, 948, 887, 974], "category": "List-item", "text": "- Large use of arbitrary tax exemptions that do not follow policy-based criteria;"}, {"bbox": [140, 975, 1038, 1000], "category": "List-item", "text": "- Very weak cash management and commitment control, leading to the accumulation of arrears;"}, {"bbox": [140, 1001, 872, 1027], "category": "List-item", "text": "- Externally financed projects and programmes operating as off-budget items;"}, {"bbox": [140, 1028, 1033, 1054], "category": "List-item", "text": "- Expenditure execution consistently exceeds budget allocations, undermining fiscal discipline;"}, {"bbox": [140, 1055, 739, 1079], "category": "List-item", "text": "- Year-end financial statements that are not sufficiently robust;"}, {"bbox": [140, 1080, 1059, 1106], "category": "List-item", "text": "- Lack of follow-up by the National Legislature on the implementation of audit recommendations;"}, {"bbox": [140, 1107, 1134, 1160], "category": "List-item", "text": "- Insufficient control over public procurement, despite some progress with the implementation of the E-procurement tool;"}, {"bbox": [140, 1161, 857, 1186], "category": "List-item", "text": "- Weak financial controls and insufficient performance monitoring systems;"}, {"bbox": [140, 1187, 607, 1212], "category": "List-item", "text": "- Insufficient capacities of oversight institutions;"}, {"bbox": [140, 1213, 1134, 1263], "category": "List-item", "text": "- Systemic shortcomings in both upstream and downstream PFM systems, along with deficiencies in information flows."}, {"bbox": [140, 1278, 1134, 1331], "category": "Text", "text": "Recommended actions suggest better integration of all systems put in place in recent years, such as the IFMIS, and their rollout across the relevant MACs involved in managing natural resources."}, {"bbox": [140, 1344, 1134, 1478], "category": "Text", "text": "Specific improvements include: enhancing revenue mobilisation in key sectors; consolidating budget execution and ensuring reliable and timely reporting; boosting internal auditing in key sectors; consolidating payroll management; strengthening the management of public and external investments; expanding the rollout of IFMIS to tackle the lack of connectivity with other applications used within the PFM/DRM environment. In addition, the new PFM strategy should incorporate gender-sensitive budgeting."}, {"bbox": [140, 1489, 1134, 1569], "category": "Text", "text": "Improvements in the PFM system are already noticeable, including the development of sector-based policies, strategies, work plans, guidelines and legislation, especially in areas targeted by development partners' programmes, supported by well targeted external technical assistance."}, {"bbox": [130, 1619, 942, 1644], "category": "Footnote", "text": "⁴ https://www.pefa.org/sites/pefa/files/assessments/reports/LR-Jul16-PFMPR-Public-with-PEFA-Check.pdf."}, {"bbox": [1027, 1680, 1144, 1704], "category": "Page-footer", "text": "Page 12 of 33"}]