KOL RES 384: SALONE RESERVE FALLS TO LESSTHAN TWO MONTHS OF IMPORTS
KOL RES 384: SALONE RESERVE FALLS TO LESSTHAN TWO MONTHS OF IMPORTS
SALONE RESERVE FALLS TO LESSTHAN TWO MONTHS OF IMPORTS
REVIEW STORIES FROM THE FRONT PAGES OF MAJOR NEWS PAPERS IN SIERRA LEONE. WE BRING IN A SPECIALIST TO ANALYSE THE STORIES IN THESE PAPERS.
THIS AND MORE FOR YOU IN THIS EDITION OF WI YARD
WHAT WE STAND FOR?
UNITY, FREEDOM AND JUSTICE
We say NO to tribalism, Regionalism and all forms of…
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DON’T FAULT THE HAND THAT LENDS, BUT THE HAND THAT TAKES BEYOND ITS MEANS.
Let me borrow credence from William Butler Yates’ poem “The Second Coming – Turning and turning in the widening gyre; The falcon cannot hear the falconer; Things fall apart; the centre cannot hold…”
Some people are blaming the IMF, while the Bio “Paopa” stooges are celebrating another SDR 187 million ~ $253 million IMF Extended Credit Ffacility (ECF) arrangement after draining our country’s foreign reserves. They fail to understand not only the level of their incompetence, but also the financial cost of using SDRs due to the cost of all future net interest payments and face value payments of SDRs for the projection period. The failure of the Bio administration to address the fiscal imbalances and most importantly reduce reckless spending has brought untold suffering to Sierra Leoneans, the likes of which we’ve not seen in recent times. Former President Ernest Bai Koroma, has all his frailties but at least his administration was able to maintain our foreign reserves to a consistent 3 months of import cover. No doubt the hungry mouths of Sierra Leoneans will miss his economic policies.
Below is Sierra Leone’s financial position with the International Monetary Fund (IMF):
1. Outstanding Purchases and Loans (SDR 335.41 million) ~ $452.33 million:
This represents the amount the country has borrowed from the IMF under various lending programs. It shows the current level of debt owed to the IMF by the country, which, as of June 30, 2024, is 335.41 million SDR (Special Drawing Rights).
2. Special Drawing Rights (SDR 251.72 million) ~ $339.47 million:
SDRs are international reserve assets created by the IMF, and this figure represents the country's allocation of SDRs. These can be used to supplement the country's official reserves or exchanged for foreign currency in times of need. The country has been allocated 251.72 million SDRs approximately $339.47 million.
3. Quota (SDR 207.4 million) ~ $279.70 million:
A country’s IMF quota determines its financial commitment to the IMF, its voting power, and its access to financial resources. The quota is the amount the country contributes to the IMF’s general resources. The country's quota is 207.4 million SDR, indicating its relative size and stake in the IMF.
Key Insights:
– The country's outstanding purchases and loans (335.41 million SDR) exceed its quota (207.4 million SDR), suggesting that it has borrowed more than its contribution.
– The country holds a substantial allocation of SDRs (251.72 million SDR), which may be used to boost its reserves or settle international obligations. Hopefully, we don’t get to utilize this under the Bio administration, considering the financial implications that comes with SDRs.
This indicates a moderate level of engagement with IMF lending, where the country has borrowed significantly more than its allocated quota but also has a notable SDR allocation. While the ECF is designed to reduce a country’s need for future borrowing, if reforms are not properly implemented or external economic conditions worsen, a country might find itself in a cycle of dependency on IMF financing.
Source: imf
©️marsah, 2024.
What happened to the mile 91 research station? Where rice was cultivated and harvested 3 times a year.
We used to export rice in the past and we had different kinds of rice
Hi family.
Shengbepia I enjoy this program so much, Mr. Marrah is a season economist and understand the issues. God bless you brother for the educating us .
What we have in SL is a mendecratic system.
Kargbo talk to your party members about their tribal inclination
Mr Kargbo you guys need to tell your SLPP leader to slow down on his useless and frivolous travelling all over the place.
This SLPP Robert Kargbo doesn't even know how things are being done.
Upon all of this state of the economy this useless guy Bio still travels & lavish the meger resources of the country.