World Bank gives 7 million dollar credit boost to S.Leone

Sierra Leone has received a seven million US dollar credit line from the World Bank to boost its economy, struggling with dropped mining output due to the financial crisis, the bank said Tuesday.

According to a World Bank statement the credit is aimed at implementing a poverty reduction strategy in the country, whose economic gains after an 11-year civil war ended in 2002 were hit hard by the 2009 financial crisis.

It would "promote sector growth while safeguarding micro-economic stability despite the impact of the global recession," the statement said.

With a heavily mining-dependent economy, Sierra Leone was hard hit by a drop in mineral output and exports as well as a decline in remittance inflows.

A marked depreciation in the currency, the Leone, at the end of 2009 fuelled inflation and gross domestic product growth came in at 4.0 percent instead of an expected 5.5 percent, according to the bank.

World Bank Country Director Ishac Diwan told reporters the credit would "allow the government to deliver basic services including education, energy and infrastructure in spite of the downturn."

Government spokesman Ibrahim ben Kargbo welcomed the credit saying "the government has a clear-cut agenda for the development of the country which includes agriculture, education, health care and energy."

According to finance ministry statistics, budget support to Sierra Leone will reach 64.3 million dollars in 2010, while grants are projected to increase from 51 million dollars in 2009 to 90 million dollars this year.

On Wednesday the International Monetary Fund announced the disbursement of the first tranche of a three-year 45-million-dollar loan in July.