IMF approves $7.3m to Guinea-Bissau

The International Monetary Fund (IMF) Executive Board completed the sixth review of Guinea-Bissau’s Extended Credit Facility (ECF) arrangement, approving an immediate disbursement of $7.3 million to address the country’s balance-of-payments and fiscal needs. This brings the total disbursement under the ECF arrangement to $33.44 million.

The IMF praised Guinea-Bissau’s progress in implementing challenging policy reforms, though it noted significant near-term risks and a challenging socio-political environment.

Notably, the IMF projects economic growth in Guinea-Bissau to reach 5 per cent in 2024, with inflation expected to decline to 4.2 per cent from 7.2 per cent in 2023.

Moreover, the board emphasised the importance of continued fiscal consolidation, particularly in the lead-up to the November 2024 legislative elections, to ensure debt sustainability and macroeconomic stability.

They also highlighted the need for urgent structural reforms, improved governance, and stronger expenditure controls, especially concerning the public utility company and wage bill spending.

Despite some missed targets, the IMF acknowledged the government’s efforts and encouraged further actions to mitigate fiscal risks and enhance transparency in public procurement.

Attribution: IMF 

Subediting: M. S. Salama