The International Monetary Fund (IMF) announced Monday October 2 that Guinea-Bissau will receive another tranche of 8.1 million dollars (7.7 million euros) after another positive assessment of the implementation of the financial program.
This is the third evaluation of the Extended Credit Facility financial program, which has been underway since January 2023, and the conclusion was announced by the IMF mission chief in Guinea-Bissau, José Gijon, in the presence of Finance Minister Suleimane Seidi.
IMF officials have been in Bissau since September 20 until October 3 (Tuesday) to assess the work of the Guinean government and have decided that the country will have access to another 8.1 million dollars in November.
The financial adjustment program was agreed in January of this year for a total amount of 38 million dollars (36 million euros), equivalent to 23.6 billion francs cfa, with a 36-month deadline and a scheduled completion date of January 2026.
The IMF mission chief stressed the importance of the results for Guinea-Bissau, stressing that if the evaluation is good, other partners will also contribute with donations.
The assessment shows “mixed results”, said José Gijon, specifying that the forecast is for the deficit to continue to increase, growth to be 4.2% for 2023 and inflation to be 8%.
Despite the “budgetary slippage” in some areas, such as salaries, the head of the mission considered that Guinea-Bissau is making “significant progress in structural reforms, having met two of the three objectives” set and “two structural targets ahead of schedule”.
The IMF’s objective, as he pointed out, is to lower Guinea-Bissau’s public debt, which is 10 times higher than agreed, and to improve treasury management.
Guinea-Bissau’s Finance Minister, Suleimane Seidi, stressed that the program is almost a year old and that the government is committed to complying with the IMF’s recommendations.