Table.

Sierra Leone: List of commitments for the ECF Arrangement

Update at Action Point/Next Steps
List of commitments/issues TIMING STATUS
May 30, 2024
Immediate and Prior Actions
Fully implement all revenue measures in the 2023
end-June
and 2024 Finance Acts
2024
Consistent with the BSL Act 2019, the BSL will The BSL
publish on its website, a report on the currency presented
redenomination process through end-June 2023 relevant
that includes: details of the
i. The total budget allocated to reports to
redenomination process, and the Parliament in
amount spent; October. BSL
ii. The total cost of the redenomination to seek
process; authorization
iii. The monthly value of the old leones in end-June to publish.
circulation and withdrawn from 2024
circulation;
iv. The monthly value of old notes
destroyed;
v. The monthly value of new leones
ordered and received;
The monthly value of new leones issued and in
circulation.

Publish the BSL’s audited 2023 financial

statements. end-July 2024

BSL to (i) commission a diagnostic review of any October 7

bank meeting the criteria prescribed in section 69 2024
 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
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May 30, 2024
of the Banking Act 2019 as of end-December
2023, conducted by an independent, reputable
international firm, to accurately determine the
bank’s asset quality and capital position, and (ii)
share the final report with Fund staff (Prior
Action).

Cabinet to discuss and authorize a ministerial

directive that (i) directs budgetary units to refrain
from making commitments and payments that
exceed approved annual and multiannual ceilings,
(ii) reinforces that those who fail to limit
commitments to the approved ceilings will be
subject to the sanctions established in the PFM
Act and Regulations (2016), and (iii) is published October 7
on the Ministry of Finance’s website. 2024

To allow verification of the prior action, the

ministerial directive will reference the cabinet
minute authorizing the ministerial directive, and
both the cabinet minute and the cabinet
memorandum will be shared with Fund staff.
(Prior Action).
Structural Benchmarks
A. Fiscal Policies and PFM

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
List of commitments/issues TIMING STATUS
May 30, 2024
Authorities to submit to Parliament a 2025 budget
consistent with overall revenue, grants and
spending projections in the program that includes
a comprehensive roads budget with information end-
on total cost, variations, allocations in FY2025, November
and expected funding needs for FY2026 and 2024
FY2027.

NRA to issue guidelines and a public notice end-

establishing a safe harbor for iron ore. December
2024
Authorities to set retail fuel prices at the end of
each month in accordance with the automatic fuel
price indexation mechanism, maintaining the continuous
excise rates established in the 2024 Finance Act. (monthly)

B. Monetary, Exchange Rate, and Financial Sector Policies

BSL to develop a strategy with MCM support to
revise and recalibrate the BSL’s monetary policy
operational tools, including to end the use of end-October
secondary market purchases of government 2024
securities for short-term liquidity management.

Authorities to initiate resolution proceedings for end-

any bank meeting the criteria prescribed in November
section 69 of the Banking Act 2019 as of end- 2024
December 2023, in a way that safeguards the
continuity of its important functions but contains

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
List of commitments/issues TIMING STATUS
May 30, 2024
fiscal costs.

C. Governance and Institutions

MEFP Commitments and other program follow-up issues
We will develop and publish an implementation MEFP
plan for the MTRS and establish reporting end-October commitment
mechanisms on its implementation by end- 2024
October.
Implement a Strategic Compliance Risk
end-October MEFP
Management Framework, with support from
2024 commitment
FAD.
EDSA. By end-September 2024 the authorities End- MEFP
plan to: September commitment
 establish a plan to clear EDSA’s arrears to 2024
NRA and IPPs

 install and commission smart meters for

an initial 1,290 large consumers;

 activate 140 AMI meters installed at

substations meant for feeder level
metering and IPP interface;

 establish a meter control center;

 establish a performance contract with
EDSA that clearly identifies KPIs;

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
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 commence the development of a time

bound strategy to minimize EDSA’s
dependence on expensive fossil fuel
power generation, which will include
negotiating more favorable terms in
prospective agreements with IPPs with
technical support from development
partners

Revenue measures continuous MEFP

 Continue to implement measures to commitment
strengthen compliance—including
improving capacity for data analytics and
tax audits—implementing the excise
stamp and fuel marking scheme,
integrating NRA revenue systems with
priority given to the integration of ECR
and ITAS, establishing a revenue court,
and enhancing stakeholder engagement.

 Implement actions to improve GST

collection, including by developing
instruments to enforce the use of ECRs,
and to prosecute non-compliance.

 Prepare and share with IMF staff

compliance reports quarterly, including

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
List of commitments/issues TIMING STATUS
May 30, 2024
information on taxpayer registration, on-
time filing, payment rates, tax audits, and
tax arrears recovery.

6 Revenue measures
 Initiate audits of at least one of the largest
mining companies.

 Undertake tax audits for high-risk

taxpayers, including in the extractive
industries, manufacturing, and telecoms. end- MEFP
December commitment
 Develop compliance improvement plans 2024
for high-risk sectors, starting with high-
net-worth individuals and multinational
enterprises.

Expenditure measures
 Maintain wages and salaries at around 3.5
percent of GDP over the program period
supported by a wage bill strategy and Continuous
commit to impose stricter controls on the
recruitment and compensation of
consultants and sub-vented agencies staff
while protecting essential services.
 Fully implement the National Public
Investment Management Policy (NPIMP) Continuous
from 2025.

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
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May 30, 2024
 Re-appraise and reselect investment
projects that are longstanding or that have
gone through variations that exceed the Continuous
regulatory threshold of 25 percent of
original cost.

Contingency planning: (i) reprioritize spending;

and (ii) strengthening revenues (Text Table 2 of MEFP
MEFP). Quarterly
commitment

Transparency on budget transfers and contingent

liabilities from SOEs:

 Approve and rigorously implement the

End-October
SOE Ownership and Governance 2024
Commission bill;

 Develop a systematic in-year reporting End-

mechanism for SOEs and adopt a December
comprehensive fiscal risk management 2024
framework.

Other PFM measures: Continuous,

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
List of commitments/issues TIMING STATUS
May 30, 2024
 Share with IMF staff, quarterly IFMIS starting with
reports with information on budget the fourth
allocations, commitments made, quarter of
completed payments, and outstanding 2024 (by end-
payments. January 2025)

 Publish information on the issuance of FS Continuous,

letters in quarterly budget reports (details starting with
in paragraph 27). the fourth
quarter of
2024 (by end-
January 2025)

 We plan to add [37] SVAs and MDAs, End-

including the Road Maintenance Fund December
Administration and Medical Supplies 2024
Agency.

 Establish a system to properly report all End-

outstanding arrears and payables, at the December
end of every quarter, [starting with the Q4 2024
2024 report].

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
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May 30, 2024
 The Expanded Cash and Debt
Management Committee (ECDMC) will
prepare cash flow projections at [bi-
Continuous
weekly] meeting and will establish a
monthly-rolling cash forecasting system
with approved guidelines.
Debt management
 Terminate the use of domestic FX linked
securities.
MEFP
Continuous
 Lengthen the maturity profile of the commitment
domestic debt portfolio; undertake other
market development initiatives identified
in paragraph 17 of MEFP.
Monetary Policy Continuous MEFP
 Terminate the securitization of the Ways commitment
and Means advances beginning with the
outstanding stock at end December 2024.

 Implement the strategy on BSL’s

monetary policy operational tools in line
with best practices.

 Publish the BSL’s audited 2024 financial

statements co-signed by another firm in
the network of the global audit firm by
July 2025.

 Reflect the single digit medium-term

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
List of commitments/issues TIMING STATUS
May 30, 2024
inflation objective in our monetary policy
statements

 Prepare an action plan to recapitalize the

BSL by end-April 2025

FX market development -
 publish the BSL FX reference rate on the
day it is compiled;

 publish the mid-rate only;

Continuous MEFP
 identify market makers;
commitment
 conduct regular FX auctions as and when
market conditions permit.

 simplify the rules of FX interbank market;

Financial sector policies End-

 Fully operationalize the bank resolution November
framework by end- November 2024. 2024.
MEFP
 Issue new corporate governance End- commitment
guidelines for banks by December 2024 December
and conduct on-site supervision of SOBs. 2024.

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
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May 30, 2024
End-June MEFP
2025 commitment
A. Fiscal Policies and PFM
Authorities to submit to Parliament a 2026
Finance bill with measures projected to deliver at
least 1 percent of GDP in additional annual tax end-
revenues. November
2025

B. Monetary, Exchange Rate,

and Financial Sector Policies
BSL to establish an Emergency Liquidity
end-June
Assistance framework in line with best practices.
2025
Authorities to fully recapitalize the BSL with
IMF technical support. end-August
2025

C.Governance and Institutions

Authorities to publish the Governance and
end-March
Corruption Diagnostic (GCD) report and an
2025
action plan based on it.
MEFP Commitments and other program follow-up issues
Finalize a report on the scope and size of tax
exemptions existing at end 2024. end-April
2025

EDSA by end-June 2025: end-June2025

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
List of commitments/issues TIMING STATUS
May 30, 2024
 Install an additional 1,710 large
consumers with smart meters, for a total
of 3000 EDSA’s larger consumers with
smart meters;

 Submit to Parliament by a revised

National Electricity Act that allows for
changes in electricity prices triggered by
changes in underlying operational costs,
while continuing to maintain a social tariff
band for the vulnerable segments of the
population;

 Strengthen the managerial and technical

capacity of the electricity regulator

 Install pre-paid meters in government

facilities,

 Prepare a settlement plan to clear all

MDA arrears to EDSA.

Develop an electronic Public Investment End-June

Management Information System. 2025
Review the viability of all capital projects in our Part of the
pipeline to ensure that plans are realistic and 2025 Budget
focused on high priority projects. Process (by
end-

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
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May 30, 2024
November)

Establish a technical budget working group to Part of the

support the Ministerial Investment Committee in 2025 Budget
a comprehensive review and reprioritization of Process (by
existing projects to limit execution to funding end-
availability. November)

Publish annually detailed information on all Part of the

government-funded capital projects in the budget, 2025 Budget
including funding allocated to them. Process (by
end-
November)

Transparency on budget transfers and contingent

Continuous,
liabilities from SOEs:
starting with
 The government will publish detailed 2025 budget
information on SOEs government
transfers and contingent liabilities.
Publish a code of conduct for the board and End-July
senior officers of the SOE and Governance 2025
Commission
The Ministry of Finance will send letters to the Part of the
[seven] MDAs with the largest historical budget 2025 Budget
overruns detailing the causes of past non- Process (by
compliance. end-
November)

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
List of commitments/issues TIMING STATUS
May 30, 2024
We will work with FAD and AFW2 to develop an Part of the
action plan to implement baseline budgeting. In 2025 Budget
that process, the MoF will develop costing Process (by
templates and provide support to MDAs on the end-
estimation of baseline costs’ November)
A pilot baseline budget for the [seven] MDAs Part of the
with largest historical budget overruns will be 2025 Budget
published alongside the 2025 Fiscal Strategy Process (by
Statement as well as detailed measures to contain end-
spending within these MDAs. November)

Develop guidelines to assess the gender Part of the

responsiveness of budget submissions; publish 2025 Budget
periodic reports on gender performance indicators Process (by
and related spending on gender priorities. end-
November)
Finalize the crisis management plan by March End-March
2025 2025

Implement TA recommendations for adoption of End-

certain elements of Pillar 1 Basel II/III capital December
frameworks by December 2025 2025

Launch the DPF once solvency challenges in End-March

commercial banks have been dealt with’ 2025

Implement AML/CFT reform measures including End-June MEFP

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 Table. Sierra Leone: List of commitments for the ECF Arrangement
Update at Action Point/Next Steps
List of commitments/issues TIMING STATUS
May 30, 2024
publishing the FIU AML/CFT national risk
assessment report, making beneficial ownership
of companies available, and strengthening 2025 commitment
AML/CFT risk-based supervision.

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