News Brief: IMF Completes In Principle First Review of Guinea's PRGF Program

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GuineaLetter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding

Conakry, July 8, 2002

The following item is a Letter of Intent of the government of Guinea, which describes the policies that Guinea intends to implement in the context of its request for financial support from the IMF. The document, which is the property of Guinea, is being made available on the IMF website by agreement with the member as a service to users of the IMF website.
 

Mr. Horst Köhler
Managing Director
International Monetary Fund
Washington, D.C. 20431
U.S.A.


Dear Mr. Köhler:

1. The attached memorandum of economic and financial policies describes economic results under the first annual program supported by the three-year arrangement under the Poverty Reduction and Growth Facility (PRGF), which the Executive Board of the Fund approved on May 2, 2001. It presents also the objectives and policies that the government of Guinea intends to pursue in the context of a second annual program covering the period July 2002-June 2003, supported by the same three-year arrangement. To facilitate the achievement of these objectives and the implementation of these policies, the government hereby requests the second loan under the PRGF arrangement in an amount equivalent to SDR 12.852 million (12 percent of quota).

2. The government of Guinea requests through this letter waivers for the nonobservance of three quantitative performance criteria (the floor on the net foreign assets of the central bank; and the ceiling on the outstanding stock of short-term external debt contracted or guaranteed by the government or the central bank at end-September 2001; and the continuous criterion on outstanding external payments arrears), as well as for the nonobservance of the structural performance criterion at end-September 2001 on the adoption by the Ministry of Economy and Finance of a repayment plan for domestic payments arrears. This latter measure was completed in March 2002. The government of Guinea also requests additional interim assistance under the enhanced Initiative for Heavily Indebted Poor Countries (HIPC Initiative) in the amount of SDR 2.746 million to cover debt-service payments to the Fund falling due from the date of approval to June 30, 2003.

3. The government bases this request on the observance at end-September 2001 of four of the seven quantitative performance criteria and two of the three structural performance criteria; on the successful implementation of the consolidation program covering the period January–April 2002, as described in the attached memorandum; and on the completion of all the prior actions for consideration of the review by the Executive Board of the Fund.

4. The government of Guinea will provide the Fund with such information as the Fund requests in connection with the progress made in implementing the economic and financial policies and in achieving the objectives of the program as set out in the attached memorandum.

5. The government of Guinea believes that the policies and measures set out in the attached memorandum are adequate to achieve the objectives of its program; however, it stands ready to take any further measures that may become appropriate for this purpose. During the course of the second annual program under the PRGF, the government will consult with the Managing Director on the adoption of any measures that could be appropriate, at the initiative of the government or whenever the Managing Director requests such a consultation. Moreover, after the period of the PRGF arrangement and for as long as Guinea has outstanding financial obligations to the Fund arising from loans under the arrangement, the government will consult with the Fund from time to time, at the initiative of the government or whenever the Managing Director requests consultation, on Guinea's economic and financial policies.

6. The government of Guinea will conduct with the Fund three reviews of the second annual program supported by the three-year arrangement, the first not later than December 2002, the second not later than end-March 2002, and the third not later than end-June 2003 at the latest.

7. The government of Guinea consents to the Fund's publication of this letter, the memorandum of economic and financial policies for 2002, the technical memorandum of understanding, and the staff report for the 2002 Article IV consultation and the first review under the PRGF.

Sincerely yours,

/s/

Ibrahima Chérif BAH
Governor of the Central
Bank of Guinea

/s/

Cheick Ahmadou CAMARA
Minister of Economy and Finance

 

Memorandum of Economic and Financial Policies
of the Government of Guinea for July 2002 to June 2003

I. Introduction

1. Since 1985, Guinea has undertaken an ambitious program of financial and structural reforms aimed at promoting the rational development of its economic potential while reducing internal and external imbalances within the framework of a market-based economic system. These efforts have covered all economic and financial sectors and have been supported by the IMF through a Stand-by Arrangement, two arrangements under the Structural Adjustment Facility (SAF), two arrangements under the Enhanced Structural Adjustment Facility (ESAF), and an arrangement under the Poverty Reduction and Growth Facility (PRGF).

2. Although this financial support allowed Guinea to make considerable progress in restoring macroeconomic equilibrium, it has not contributed effectively to the reduction of poverty, primarily because of the burden of the largely multilateral external public debt, as well as other unfavorable factors. Thus, owing to continued adjustment efforts in the area of the public finances and structural reforms, as well as in monetary policy, on the one hand, and the formulation of its poverty reduction strategy paper (PRSP), on the other, the government of Guinea is benefiting from an arrangement under the PRGF covering the period May 2001 to May 2004.

II. Implementation of the Program

3. The implementation of the first annual program supported by the PRGF, covering the period from April 1, 2001 to March 31, 2002, was heavily influenced during the first six months by exogenous factors, primarily the insecurity on the borders and the sharp rise in the price of petroleum products. These phenomena put considerable pressure on budgetary expenditure, particularly as regards security outlays, following the aggressions on the southern borders, and a compression of spending in the social sectors. However, to correct for slippages relative to some of the targets of the program for end-September 2001, the government successfully implemented measures under a consolidation program during the period January-April 2002 to ensure the reestablishment of the program's momentum.

4. The execution of the budget was thus characterized by (i) a marked shortfall and a delay in the mobilization of external financing; (ii) shortfalls in domestic revenues, including nontax revenues, primarily owing to the effects of the rebel attacks on economic activity, as well as to cases of embezzlement, fraud, and tax evasion; (iii) a considerable increase in security-related spending; and (iv) a slight compression of other spending, coupled with a delay in the execution of spending in the priority sectors.

5. As of December 31, 2001, priority sector spending financed by the Initiative for Heavily Indebted Poor Countries (HIPC Initiative) resources totaled only GF 1.97 billion, compared with a projection of GF 108 billion. This situation was due to (i) the delay in the rescheduling of Guinea's debt by the Paris Club, which took place on May 15, 2001, five months after the beginning of the budget year; (ii) the nonmobilization of the transfers expected from the public enterprises on account of debt service due to Paris Club creditors; iii) delays related to public procurement procedures and contract negotiations, and the seasonality of certain projects in the priority sectors (road maintenance and well construction); and (iv) the weakness of the structures and support procedures for budgetary decentralization. Based on these results, the budget projections for the rest of the year were revised within the framework of the program's objectives.

6. In the area of the public finances, the implementation of structural measures was satisfactory. Among the measures taken were the production of the administrative and management accounts for the fiscal years 1998 and 1999. The adoption of a repayment plan for domestic payments arrears, planned for September 30, 2001 was completed only in March 2002. However, an inventory of these arrears was completed by September 2001.

7. All the planned measures in the area of money and credit were carried out, including the increase in the minimum capital of banks from GF 2 billion to GF 5 billion; the extension of banking supervision rules to accounting firms through the establishment of a complementarity between their auditing activities and those of the central bank; and the increased accountability of the administrators, managers, and shareholders of credit institutions with regard to internal controls. The Central Bank of the Republic of Guinea (BCRG) also liberalized the conditions governing foreign currency deposits held by residents in the banking system. Moreover, the planned reforms to improve the conduct of monetary policy, strengthen the health of the banking system, and create a coherent framework for monetary statistics were fully implemented.

8. Despite efforts to mobilize revenues, important shortfalls occurred at the end of 2001, compromising not only the objective of reducing the government's debt to the banking system but also the realization of social sector spending, for which substantial resources had been mobilized from donors.

9. At end-December 2001, overall domestic revenue totaled GF 670.2 billion, as against a revised target of GF 700.3 billion, a shortfall of GF 30.1 billion. Total expenditures, excluding external financing, amounted to GF 706.7 billion at end-December 2001, compared with the target of GF 794.8 billion, a reduction of GF 88.1 billion. This contraction primarily affected the priority sectors and investment spending, despite the savings in the amortization of the external debt.

10. In view of the slippages at end-November 2001, and, more particularly, given the uncertainty surrounding resource mobilization and the level of actual spending in the priority sectors, the government, in close collaboration with the staffs of the IMF and the World Bank, embarked upon a consolidation program covering a four-month period from December 2001 to March 2002. This program aimed at correcting the slippages while consolidating the positive results achieved by continuing the efforts in the areas of: (i) catching up on priority spending; (ii) regularizing financial relations between the government and its domestic creditors; and (iii) reducing the government's debt to the banking system.

11. In the framework of the poverty reduction strategy adopted by the government, all the economic measures aim at meeting the indicators set out in the PRSP. This memorandum sets out the achievements of the consolidation program, and describes the policies and actions to be taken for the rest of 2002 and through the end of the PRGF arrangement.

III. Implementation of the Measures Foreseen at end-March 2002

12. Monthly revenue reached 106.8 percent of projections at end-March 2002. The consolidation program's targets were exceeded by GF 8.9 billion, as revenue reached GF 184.5 billion, versus a target of GF 175.6 billion. This good performance resulted from the improvement in tax collection by the tax administration, as well as from the measures presented in the table of the consolidation plan (Appendix I, Attachment I, Table 3 and 4).

13. Current expenditure reached GF 158.9 billion, compared with the projected level of GF 124.4 billion, an excess of GF 34.5 billion corresponding to an acceleration of priority sector outlays of some GF 24 billion and compatible with attaining the performance indicator objectives of the PRSP. There was also GF 11 billion in compensations linked to the settlement of cross debts between the state and the public enterprises.

14. As for the reforms to be carried out in the electricity sector, the stages of the action plan foreseen for end-March 2002 by the government (phases 0 and 1) were fully implemented. These included (i) the confirmation of the privatization strategy, of the present level of electricity tariffs, and of the intention to eliminate fraud in the sector and limit exonerations in the payment of electricity; (ii) the adoption and implementation of an action plan for the Société Guinéenne d'Electricité (SOGEL); (iii) the fusion of SOGEL and the Enérgie Eléctrique de la Guinée (ENERGUI); (iv) the update of the independent arbitration procedure for commercial disputes; (v) the preparation of a plan for the independent verification of electricity consumption; and (vi) the institution of a special policing unit.

15. With regard to the domestic payments arrears, restructuring accords have been signed with creditors whose claims are not subject to dispute. A part of these debts has been settled by the issue of government bonds that have been guaranteed by the central bank to facilitate their discounting by commercial banks. The reimbursement of the value-added tax (VAT) credits due to the mining companies has begun, with 25 percent of the amounts cleared thus far.

16. With a view to improving the collection of the public enterprises' tax obligations, the advance payment system agreed on with the Eléctricité de Guinée (EDG) and with the Société des Eaux de Guinée (SEG) has been extended to cover the telecommunications company (SOTELGUI), which has paid a part of the taxes due to the state in the current year on this basis.

17. New repayment schedules have been concluded and signed with the enterprises concerned with the reimbursement of on-lent loans, taking account of their cash-flow situation.

18. Other measures linked to the fourth structural adjustment credit (SAC IV) were also carried out as programmed. These included, among other things, the formulation and approval of the full PRSP prepared through an exemplary participatory approach, which was adopted by the government and presented to the National Assembly during the last budgetary session, and the full catching up of the shortfall in spending in the priority sectors in 2001.

19. At end-March 2002, total effective spending in the priority sectors as part of the catch-up plan totaled GF 23.9 billion, as against GF 27.6 billion programmed, an execution rate of 86.5 percent. Of this total, the execution of spending commitments from the 2001 budget year reached GF 15.5 billion, while those for the 2002 budget year were GF 8.4 billion. In addition to these outlays, total spending commitments of GF 31.9 billion were made, of which GF 20.5 billion represented current spending in the priority sectors, and GF 11.4 billion in capital spending to rehabilitate schools, rebuild rural roads, and improve the supply of potable water in rural areas. Of the current spending, GF 10.5 billion was transferred to the local administrations on account of the Ministries of Preuniversity Education and of Health.

20. This considerable effort to catch up on priority sector spending led to a stock of net bank credit to the treasury estimated at GF 217.6 billion at end-March 2002, as against GF 197.1 billion projected in the consolidation program, that is, a deviation of GF 20.5 billion.

21. The primary balance reached GF 35.8 billion, or 0.5 percent of GDP at end-March 2002, as against the program target of GF 56.3 billion, or 0.9 percent of GDP).

22. Taking into account that some quantitative and structural performance criteria were not met, the government of Guinea request waivers for the nonobservance of (i) at the end-September 2001, the floor on the net foreign assets of the central bank; (ii) also at end-September 2001, the ceiling on the outstanding stock of short-term external debt contracted or guaranteed by the government or the central bank; (iii) the continuous ceiling on the outstanding stock of external payments arrears, and (iv) the adoption by the Ministry of Economy and Finance of a repayment plan for domestic payments arrears (structural criterion).

IV. The Economic and Financial Program for 2002 and the Realization of the Objectives of the Second Year of the PRGF —July 2002 to June 2003

23. The program of the government of Guinea for 2002 aims at a growth rate of 4.2 percent, with growth of 5.8 percent in the rural sector; an inflation rate, as measured by the consumer price index, of 4 percent; and a deficit of the external current account of the balance of payments (including official transfers) of some 6.9 percent of GDP. The tax ratio is projected at 12.6 percent, with a ratio of current spending to GDP of 10.7 percent and a ratio of public investment to GDP of 8 percent.

24. This program, conceived after the finalization of the PRSP, which is the sole framework for the orientation of public policy, should allow the government to meet all the objectives agreed on with its partners in the framework of the PRGF arrangement. The policy of the government is articulated around three essential pillars:

  • the acceleration of economic growth, with larger income opportunities made available for the poor through support for rural development, the development of basic infrastructure, support for the mining sector through the promotion of the megaprojects of private investors, and support for the tourism sector and for artisanal production through the implementation of a sectoral development plan;

  • the development of, and equitable access to, basic social services;

  • the improvement of governance, and the strengthening of institutional capacities and the participatory process.

A. Public Finance

25. In the area of public finances, the budget submitted to the National Assembly in mid-February 2002 is based on a considerable effort to mobilize domestic resources and to allocate them on the basis of the intersectoral and intrasectoral priorities defined in the strategy. These efforts will allow not only the attainment of the quantitative objectives set for the financial administrations but also the financing of eventual deficits during the implementation of the program.

26. Overall revenue is projected to increase from 11.5 percent of GDP in 2001 to 12.6 percent in 2002, while current expenditure would decrease from 11.7 percent of GDP to 10.7 percent despite the increase in allocations to the priority sectors, financed in part by interim debt relief under the enhanced HIPC Initiative. Domestically financed capital spending is projected to expand considerably from the extremely low level of 2001 to reach 1.3 percent of GDP in 2002. As a result, the primary surplus is projected to rise from 0.7 percent of GDP in 2001 to 2.1 percent in 2002. In spite of the planned increase in capital expenditure and net lending, the overall deficit (on a commitment basis, and excluding grants) is expected to reach 6.4 percent of GDP, compared with 7.6 percent in 2001. Based on the planned reduction in domestic payments arrears, the cash deficit is projected at 3 percent of GDP, a decrease of 0.8 percentage points over the previous year.

27. The mobilization of revenues will take place largely through (i) the expansion of the tax base; (ii) the strengthening of tax controls and procedures for liquidation and collection; (iii) the interdiction of all tax and customs exemptions beyond those specified in the codes and special conventions; (iv) the setting of quantitative targets and performance criteria for the financial administrations and other revenue-generating services; (v) the centralization of all government receipts in an account of the treasury; (vi) the recovery of all claims from the previous and earlier fiscal years; (vii) the reimbursement of amounts embezzled from the state; and finally, (viii) the strengthening of the fight against fraud and tax evasion.

The envisaged revenue-enhancing measures follow on the administrative steps taken during the consolidation period. As concerns the National Tax Directorate, a series of measures has been put in place to strengthen the large enterprise unit and the tax audit division. The measures aim to (i) monitor more closely exemptions to the tax code; (ii) update and maintain the files on taxpayers; (iii) better define and widen the tax base; (iv) reinforce the verification of tax declarations, inter alia, by auditing the 2001 balance sheets of all enterprises which have requested the reimbursement of VAT credits, but which have not been subject to an audit during the past three years; (v) deepen the training of agents; and (vi) extend the computerization of the tax services. At the Customs Directorate, emphasis will be placed on reconciling the statistical data of the Customs Directorate, the preshipment inspection company (SGS) and the Port of Conakry to improve the assessment of the taxable base; suspending special regimes; introducing a customs valuation office; and enacting a series of measures to improve computerization, training, and the statutes of customs agents. In both directorates, the measures chosen are drawn in part from the conclusions of operational audits that were commissioned by the Ministry of Finance at end-December 2001, as well as the technical assistance reports of the French Customs Directorate on reducing customs fraud and improving the handling of disputed cases. Finally, as concerns tax controls, the measures foreseen include, in particular, the organization and implementation of a financial control system for decentralized spending; the strengthening and rationalization of control procedures over public spending; the internal reorganization of the financial control office and its procedures; and the training of personnel.

29. On the expenditure side, measures aim to extend the devolution of spending authority to all priority sectors and all administrative regions and prefectures; to devolve responsibility for establishing and executing public procurement contracts; and to improve the quality of spending by respecting budget and accounting procedures. Further measures include the systematization of physical inventories; the strengthening of the effective control over services rendered; improvement of the transparency in the management of public funds through the respecting of public procurement procedures; and finally, management of the budget aimed at maintaining macroeconomic equilibrium. Moreover, an action plan has been put in place to strengthen the Division of Tax Audits; this plan foresees the extension of the documentary and physical verifications of enterprise balance sheets for 2001; a program of audits of informal sector activity; the monitoring of recruitment; and the continuing professional training of personnel. To avoid the catching-up phenomenon, these measures will be applied to improve the execution of priority sector spending.

30. With regard to the financing of the budget, the policies aim to avoid the accumulation of new domestic arrears and to respect the repayment plan adopted by the government in March 2002 for these arrears, which amounted to GF 41 billion at end-2001, so as to support private sector activity. Under this plan, a part of these debts, amounting to GF 30 billion, has been securitized, and the balance has been retired through compensation. Moreover, the authorities will continue to reduce the treasury's debt to the domestic banking system, encourage nonbank financing, and limit external borrowing to concessional sources. Notwithstanding the probable delay in the mobilization of certain external resources initially expected in 2002, the treasury will reimburse GF 33.9 billion to the BCRG, thus reducing the pressure on bank liquidity and reversing the tendency of the last two years. Part of the financing requirement will be covered by further treasury bill auctions at varying maturities and the issue of new bonds and debentures; these issues should constitute an attractive local currency instrument for saving, and thus attenuate the strong demand for foreign exchange on the official market.

B. Monetary and Credit Policy

31. The central bank will continue to implement a prudent monetary policy in order to ensure the efficient management of bank liquidity and meet the 2002 inflation objective of 4 percent. The centerpiece of this policy will be the reduction of net bank credit to the government, which expanded by 3.7 percent of beginning-of-period broad money in 2001, owing to the need to finance the larger-than expected government deficit. Broad money growth will thus be kept to 8.1 percent in 2002 (compared with the expansion of 14.8 percent registered in 2001). This policy will be implemented through the use of the existing indirect instruments (monetary regulation bills and flexible interest rates, etc.) in order to maintain firm control over the evolution of reserve money and bank liquidity. In this context, the projection of liquidity will be improved by implementing certain measures recommended by a technical assistance mission from the IMF's Monetary and Exchange Department. The net domestic assets of the banking system are projected to expand by 3.6 percent in 2002, notwithstanding the GF 23.6 billion reduction in net credit to the government. Net credit to the private sector is expected to expand moderately. With relatively little new external financing expected in 2002, the net foreign assets of the central bank are projected to increase only moderately, by the equivalent of US$5.6 million.

32. Moreover, as concerns the official foreign exchange auction market, the authorities will make sure that the receipts from exports of precious metals are subject to the same foreign exchange repatriation obligation as other mining exports, so as to increase the supply of foreign exchange on the official market. The central bank will consider the possibility of increasing the frequency of the foreign exchange auctions and will refrain from any intervention in the market aimed at stabilizing the rate of the Guinean franc.

33. The central bank has received a mission from the IMF's Treasurer's Department that analyzed the implementation of central bank safeguard clauses. The mission proposed a series of measures to strengthen financial reporting at the BCRG, with a view to bringing it into conformity with international bank accounting standards. In this sense, the BCRG will formally decide by September 2002 to prepare its financial reports on the basis of the International Accounting Standards (IAS), and to create an internal audit committee (composed in part of accounting experts independent of the BCRG) to carry out regular assessments of the bank's accounting reports. In this context, it will proceed with the training of its agents responsible for internal auditing through foreign institutions, such as the Central Bank of West African States (BCEAO), the Bank of Central African States (BEAC), and the Bank for International Settlements (BIS). In the same spirit of moving toward conformity with international norms, the central bank will issue instructions and regulatory texts modifying the prudential ratios applied to the banks to bring them closer to the Basel Core Principles.

V. Structural Reforms

A. The Public Enterprises

34. The reform strategy adopted by the government aims at removing the structural obstacles that hinder private sector activity and at increasing the efficiency of public services and the equitable access of the population to them. A key factor in this strategy is reducing the financial burden of the parapublic sector on the state budget, improving the development perspectives of the concerned enterprises by regularizing their financial relations with the state, and finally, ensuring private sector participation in their reform. The government has already reached agreement with the large enterprises on fixed monthly payments for the government's consumption of water, electricity, and telecommunications, and for the transfer of taxes collected by the enterprises on behalf of the government, which are to be regularized at the end of each month. This interim system ensures a better cash-flow situation of the enterprises and prevents the accumulation of cross arrears between the state and the enterprises. In addition, the government intends to achieve the full regularization of its financial relations with these enterprises. For this reason, the envisaged reforms in the water and electricity sectors will be continued and completed in accordance with our privatization strategy and the modalities and plans to be agreed on with the partners in these sectors. The reforms in the electricity sector will continue in the framework of the agreement with the World Bank and the Agence française de développement (AFD). In the water sector, the government will provide notification of the contracts as soon as possible to the consultant selected to prepare a strategic study of this sector of the contracts. Moreover, in the telecommunications sector, a strategy was elaborated and codified in a declaration of sectoral policy in the first quarter of 2002. This strategy foresees the creation by end-December 2003 of a legal and regulatory framework that favors private investment in the sector; the obligatory interconnection between the networks of authorized operators; and the creation and implementation of a regulatory institution. Prior to the finalization by the end of the 2002 of the study, already under way, of the regulatory institution, no telecommunications licenses will be renewed.

B. Public Procurement

35. A program composed of several elements to strengthen the institutional and regulatory framework of public procurement is under preparation. It includes the ex post audit of public contracts; an analytical review of procurement contract procedures; the regulation of contracts of local authorities; the imposition of sanctions in cases of violation of procurement regulations; and the introduction of a consultative committee on public procurement. This strengthening is part of the process of administrative and financial devolution and decentralization begun in 2001. Drawing on the success of the pilot program that transferred responsibility for education and health spending in the prefectures of Conakry and Kindia to the local authorities, financial devolution will be gradually extended to the other prefectures starting in 2002, accompanied by a training program for agents at the local level aimed at ensuring the proper execution of spending and the respect of budgetary rules. Moreover, public procurement up to a value of GF 100 million will be authorized from now on at the prefectoral level, and for contracts up to GF 300 million at the level of governorships.

C. The Civil Service

36. Two new laws governing the civil service, prepared in close consultation with the trade unions and other civil society representatives, were approved by the National Assembly in April 2001. These laws aim at modernizing the statutes of the civil service, introducing a system of merit-based remuneration and advancement, and giving the civil service ministry greater flexibility in the management of civil service personnel. The decrees applying these laws are being prepared and will be promulgated before end-2002, following a public information campaign. The authorities intend to conduct two studies with bilateral external assistance—one, to be completed by end-September 2002, on rationalizing the system of contractual public employment, and the other on the implementing of an appropriate system of merit-based remuneration and advancement.

D. The Social Security System

37. The National Social Security Fund (CNSS) has been implementing a restructuring program based on the recommendations of its recent audit. The program has allowed the new management to finalize the accounts for the financial years 1999 and 2000, put an end to the continued deterioration of the financial situation of the fund, and considerably reduce the stock of pension and other arrears. The program will continue in 2002 with an acceleration of the computerization of its operations, for which foreign financing is being sought. Moreover, an actuarial study financed by the United Nations Development Program (UNDP) has been initiated by the International Labor Organization, with a view to establishing the parameters of an overhaul of the entire social security system in Guinea. This is essential to resolving the structural deficit of the CNSS and ensuring that it can fulfill its defined role in the poverty reduction strategy. While awaiting the results of this assessment, the government and the CNSS will by end-September 2002 determine the stock of arrears on contribution payments owed by the state on account of retired workers in public enterprises that have been privatized or liquidated, and will decide on the reimbursement of these arrears, the financial effect of which will be included in the 2003 budget.

E. The Anticorruption Effort

38. Good governance and the fight against corruption are a priority of both the government's policy and the poverty reduction strategy. The National Anti-Corruption Committee (CNLC) has conducted a survey of public perceptions of corruption in Guinea and has prepared a National Anti-Corruption Strategy, which is to be validated at a national forum by end-December 2002. The statutes of the CNLC were adopted in January 2002 and will be promulgated as soon as possible, in order to allow it to begin a public information and awareness campaign and to begin the implementation of action plans in six key areas. The CNLC will continue its investigations into allegations of corruption and will present its conclusions to the Ministry of Justice for judicial follow-up.

F. Justice Reform

39. The government is fully aware of the fundamental importance of a well-performing justice system, both for the success of the poverty reduction strategy and for the creation of an environment conducive to business. Thus, the Ministry of Justice has finalized an action plan with a firm timetable for the different steps in handling the corruption cases submitted by the CNLC, and it will prepare by end-December 2002 a reform strategy that sets out the priorities for the reform of the Guinean justice system. A key element will be the application of the acts of the Organization for the Harmonization of Business Law in Africa (OHADA) Treaty, which was ratified by the National Assembly in April 2002. In the context of preparing this strategy, the government will also reflect on how to ensure the integrity and independence of the magistracy, including through the system of remuneration for magistrates and other judicial personnel.

G. External Debt Management

40. External debt management continues to be a problem for the Guinean administration, despite certain improvements in the last few years. Given the importance in the context of the enhanced HIPC Initiative of ensuring full control over debt service and the flows of interim HIPC Initiative assistance, the government has decided to make fully operational before end-June 2002 the new debt-management structure and to provide the assigned workers with appropriate training, with technical assistance from Debt Relief International. Following this assistance, the government has committed itself to providing the staff of the IMF with monthly tables detailing debt service due, paid, and rescheduled, by creditor and currency, as well as updated quarterly projections. The full set of tables for each month will be submitted by the fifteenth of the following month, beginning in July 2002.

H. The PRSP Process

41. In accordance with the schedule established in the interim PRSP, the draft full PRSP was finalized in December 2001 and presented to a national validation forum. The full PRSP was adopted by the government in January 2002 and presented to the National Assembly in February 2002. A national implementation workshop was held in Conakry on May 6-7, 2002, and roundtables will be organized during the third quarter of the year to discuss with development partners the mobilization of financing for the overall strategy and the sectoral policies. The authorities will continue to allocate the resources freed by debt relief under the enhanced HIPC Initiative only to the priority sectors and to further strengthen the monitoring of these resources.

42. At the same time, the government is continuing its efforts to improve the sociodemographic statistics, so as to better target the policies and measures and assess their impact on the population. An integrated household budget-consumption survey has been launched with the support of the World Bank, and a pilot survey of a restricted sample of households was completed in March 2002. With the support of the German Development Cooperation, the authorities intend to complete by end 2002 the extension of their macroeconomic projection model to include specific modules covering the priority sectors and public spending in these sectors. This will allow a better projection of the social impact of the overall poverty reduction effort and a balancing of budget allocations among the priority sectors to meet the quantified targets of the PRSP.

VI. Program Monitoring

43. The implementation of the program will be monitored by indicative benchmarks and quantitative performance criteria at end-September 2002, end-December 2002, end-March 2003, and end-June 2003, as well as by structural benchmarks and performance criteria, as presented in Tables 5 and 6. The quarterly quantitative performance criteria include (i) a floor on the central government primary balance; (ii) a ceiling on net credit to the government; (iii) a ceiling on reserve money; (iv) a floor on net foreign assets of the central bank; (v) a ceiling on new nonconcessional medium- or long-term external debt contracted or guaranteed by the government or the central bank; (vi) a ceiling on outstanding stock of short-term debt contracted or guaranteed by the government or the central bank. There is also a continuous ceiling on outstanding external payments arrears. The definitions of the variables followed by these benchmarks and criteria remain those set out in the technical memorandum of understanding annexed to the letter of intent for first annual program. The implementation of the program and the outturn relative to the program's targets will be subject to four reviews, based on the quarterly results indicated in the tables; these will take place before end-December 2002, end-March 2003, and end-June 2003, and end-September 2003, respectively.

44. Three measures will serve as structural benchmarks: (i) for end-December 2002, the establishment of a computerized connection between the treasury's accounts and the computerized expenditure-tracking system; (ii) for end-September 2002, the adoption of off-site inspection rules for the supervision of microfinance institutions; and (iii) for end-March 2003, the definition of a package of measures to fight money laundering. The program includes also three structural performance criteria: (i) for end-September 2002, updating the taxpayers' file of the National Tax Directorate; (ii) for end-September 2002, launching the audit of the 2001 balance sheet of all enterprises not subject to a tax audit for the last three years that have filed for VAT credit; and (iii) for end-December 2002, issuing instructions and regulations governing prudential ratios for commercial banks, in order to bring them closer in line with international standards.

45. As prior actions for consideration of the report on the first review under the PRGF arrangement by the Fund's Executive Board, the government of Guinea has done the following:

  • met the fiscal and monetary targets for end-March 2002 set out in the consolidation program described in paragraphs 10 , 12, and 13 above;

  • fully implemented phases 0 and 1 of the action plan for the electricity sector set out in paragraph 14 above;

  • formally adopted the domestic arrears repayment plan, a structural performance criterion not observed at end-September 2001;

  • presented definitive monthly tables indicating the amounts of external debt service due, paid and rescheduled, by creditor and currency, as well as the accumulation or repayment of arrears on this debt service, from January 2001 through March 2002;

  • notified the consultant selected to prepare a strategic study of the water sector of the conditions of the contract.

The third, fourth, and fifth disbursements under the PRGF arrangement will be conditioned on the observance of performance criteria for end-September 2002, and end-December 2002, and end-March 2003 respectively, as identified above and in Tables 5 and 6, as well as on the conclusion of the second, third, and fourth reviews.

46. During the period of the second annual program under the PRGF arrangement, the Guinean government will not introduce new or intensify existing exchange restrictions, introduce or modify any multiple currency practice, impose or intensify import restrictions for balance of payments reasons, or conclude bilateral payments agreements that are inconsistent with Article VIII of the Fund's Articles of Agreement.

Table 1. Guinea: Quantitative Performance Criteria and Benchmarks Under the Three-Year PRGF Arrangement, 2001–02

  Mar. 2001 June 2001 September 2001 December 2001
 



  Prog. est. Indicative Benchmark Outturn Prog. Perf. Criteria Adj. Prog. Outturn Indicative Benchmark Adj. Prog. Outturn

  (In billions of Guinean francs)
Central government primary balance (floor)1,2 27.2 -9.0 52.0 -7.1 -7.1 57.6 33.6 33.6 42.5
Net bank credit to the government (ceiling)3,4 14.4 -63.9 26.7 -8.9 -27.2 -37.7 -17.8 -53.2 20.5
Reserve money (ceiling) 346.9 362.1 351.8 368.5 368.5 367.2 358.4 358.4 381.0
  (In millions of U.S. dollars, end of period)
Net foreign assets of the central bank (floor)5,6,7 21.3 71.0 31.0 93.2 113.1 74.7 98.4 125.1 60.7
New nonconcessional medium- or long-term external debt contracted or guaranteed by the government or the central bank2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Outstanding stock of short-term external debt contracted or guaranteed by the government or the central bank2,7 0.0 0.0 3.3 0.0 0.0 16.3 0.0 0.0 16.4
Outstanding external payments arrears (ceiling)2,8 0.0 0.0 2.5 0.0 0.0 1.0 0.0 0.0 2.6
  (In billions of Guinean francs, unless otherwise specified; end of period)
Central government nonmining revenue2,9 127.8 296.5 249.3 449.6 449.6 384.6 598.6 598.6 504.9
Of which: customs revenue2,9 82.7 171.8 162.2 260.6 260.6 251.1 358.7 358.7 326.6
Central government noninterest current expenditure1,2,9 136.5 285.5 265.4 449.6 449.6 423.3 600 600 583.1
Current public expenditure in priority sectors9,10 17.1 35.2 13.9 56.1 56.1 33.8 97.9 97.9 62.9
Repayment of domestic arrears2,9 6.8 0.5 0.6 -0.6 -0.6 12.9 -4.5 -4.5 17.8
Memorandum item:                  
  Nonproject external financial assistance (in millions of U.S. dollars)2,9 2.2 57.8 1.6 74.9 74.9 50.7 84.9 84.9 61.0

1On a commitment basis; the domestic primary balance is defined as the difference between total revenue (excluding grants) and noninterest domesticexpenditure (excluding foreign-financed capital expenditure).
2Cumulative from the beginning of the respective calendar year of the test date.
3Excluding government paper issued in counterpart of the revaluation of the stock of gold.
4To be adjusted downward/upward for any cash settlement of domestic arrears lower/higher than indicated.
5For purposes of the program, during 2001 gold will be valued at the U.S. dollar price agreed for end-December 2000.
6To be adjusted upward for any new accumulation of external payments arrears, or cash settlement of such arrears inferior to the program’s projections.
7Excluding commercial credits.
8Excluding arrears under negotiation with creditors, monitored on a continuous basis.
9Does not constitute a performance criterion for end-September 2001.
10Priority sectors are defined to include public health, education, road maintenance, justice, rural development, urban planning, and social affairs. Theprecise definition of these expenditures is contained in the annexed Technical Memorandum of Understanding.

Table 2. Guinea: Structural Measures


Measures

Status

Comments


Public finances

Implementation of the customs reform program.

2001–03

Continuous

Implementation of the recommendations of the tax audits of four key public enterprises.

2001–03

Delayed

Reduction of tax exemptions.

2001-03

In process

Production of administrative and management accounts  (comptes administratif et de gestion) for the 1998 and 1999 fiscal years.*

September 2001

Completed

Strengthening of internal control and audit of budget execution (financial inspectorate).

December 2001

Delayed

Strengthening of the Accounting Office of the Supreme Court.

2001–02

In process

Consolidation of public accounts.

September 2001

In process

Adoption by the Ministry of Economy and Finance of a repayment plan for domestic payments arrears.*

September 2001

Completed
March 2002

Monetary reforms

Introduction of central bank bills with a  14-day maturity.

September 2001

Completed

Elimination of the central bank guarantee for interbank transactions.

April 2001

Completed

Liberalization of the conditions of foreign exchange accounts of residents in domestic commercial banks (other than foreign exchange bureaus).

December 2001

Completed

Completion of study on the operation of the foreign exchange auction.**

June 2001

Completed

Introduction of a revised regulatory framework governing foreign exchange swap transactions between the central bank and the commercial banks.

June 2001

Completed

Initiation of monthly publication of a central bank information and statistical bulletin.

July 2001

Completed

Creation of a central bank website containing the monetary database.

September 2001

Completed

Banking supervision and restructuring

Adoption of a regulatory framework providing for an adequate audit of banks.*

September 2001

Completed

Submission to the Banking Committee (Comité des Agréments) of a proposal for increasing the minimum capital requirement from GF 2 billion to GF 5 billion.

June 2001

Completed

Revision of the banking law, along with several application measures, to require all banks to hold their social capital in Guinean francs.

June 2001

Completed

Adoption of strengthened regulations concerning the refinancing of banks under Restructuring that are illiquid but solvent.

June 2001

Completed

Decision on the provisional administration of banks under restructuring.**

June 2001

Completed

Announcement by the Ministry of Economy and Finance of the liquidation of the Crédit Mutuel de la Guinée.

April 2001

Completed

Adoption of an action plan for transforming the Crédit Rural de la Guinée into a specialized financial institution.

July 2001

Completed

Adoption of the institutional and informational framework for microfinance institutions necessary for their prudential supervision by the central bank.

December 2001

Completed


Notes: * = performance criterion for end-September 2001; ** = structural benchmarks.

Table 3. Guinea: Fiscal Targets of the Consolidation Program;
January–March 2002

(In billions of Guinean francs, unless otherwise indicated)

    January
February
March
    Prog. Real Prog. Real Prog. Real

Revenue 55.4 60.6 111.2 117.3 175.7 184.5
Expenditure 88.0 72.4 155.5 153.9 228.4 275.3
Current expenditure 51.3 43.4 84.0 95.6 124.4 158.8
  Of which: in priority sectors 6.7 3.9 10.6 11.0 19.5 26.4
Capital expenditure 34.8 29.0 69.6 58.3 102.1 116.1
  Of which: in priority sectors 4.8 0.0 9.5 0.0 11.9 11.7
Change in domestic arrears -0.9 -11.5 -3.9 -12.3 -15.0 7.5
Bank financing 0.6 -18.2 -12.2 -16.9 -24.5 -51.6
  Central bank -4.0 -31.1 -25.0 -24.6 -32.3 -75.0
  HIPC Initiative special account 4.6 0.0 12.8 -5.2 7.8 12.1
  Commercial banks 0.0 13.0 0.0 13.0 0.0 11.4
Primary fiscal balance 8.1 34.8 27.4 56.6 74.9 70.1
Overall fiscal balance    
  Including grants -17.1 -3.1 -19.7 -12.7 -4.7 -56.2
  Excluding grants -32.7 -11.8 -44.4 -36.6 -52.8 -90.8

Table 4. Guinea: Measures Under the Consolidation Plan, December 2001–March 2002

Measures

Timing

Status

Comments


Public finance      
Take stock of all tax obligations outstanding from previous year. December 2001 Completed Each administration has established the amounts due, and recovery brigades have been sent out.
Take stock of all ad hoc exemptions granted in 2001. Starting December 2001, annul these exemptions. December 2001 Completed in January 2002  
Take stock of cross debts between the government and public enterprises, with a view to setting up a settlement plan (e.g., by compensation or bonds issuance). December 2001 Completed in March 2002  
Put in place a more detailed procedure for a monthly ad hoc tax audit by the National Tax Directorate on a sample of the largest taxpayers. Monthly report will be transmitted to the Fund's Resident Representative. December 2001 Completed with delays Draft of second and third reports provided in May.
Starting in January 2002, extend monthly payment system to the telecommunications company (SOTELGUI). January 2002 Completed  
Provide the status of the collection of revenues from rental income and agree on an amount to be transferred to the treasury. December 2001 Completed  
Take stock of and reschedule amounts due on retroceded loans to public enterprises and the proceeds of a Japanese grant retroceded to private operators. December 2001 Completed 25 percent of amount due of GF 4.4 billion was paid in March 2002. Balance to be settled by June 2002.
Establish action plan to strengthen local capacity. 2002 Training courseshave begun  
Sign accords on settlement of domestic arrears (part of repayment plan), including VAT credit reimbursements. December 2001 Partially completed for VAT in March 2002 25 percent of VAT credit due was settled in March.
Apply administrative and penal sanctions to individuals and enterprises convicted in cases of fraud. Ministry of Finance will redouble efforts to recover the amounts lost to fraud. March 2002 Not completed GNF 1.6 billion recovered thus far, and the cases of several individuals from the administration and from enterprises have been brought to the attention of the Ministry of Justice.
Monetary policy
Transmission to the Fund Staff of the action plan adopted by the Council of Ministers in August 2001 on transformation of the Crédit Rural de Guinée (CRG) into a financial institution. January 2002 Completed  

Table 5. Guinea: Quantitative Performance Criteria and Benchmarks
Under the Three-Year PRGF Arrangement, 2002–03

    2002 March Est. 2002-03
    June 2002 Indicative  Sep. 2002 Perf. Criteria Dec. 2002 Perf. Criteria Mar. 2003 Indicative  June 2003 Indicative 

  (In billions of Guinean francs, otherwise specified)
Central government primary balance (floor)1,2 42.7 64.7 83.5 79.7 21.9 54.2
Net bank credit to the government (ceiling)3,4 -51.6 26.9 -19.9 -23.9 -0.2 -9.7
Reserve money (ceiling) 342.2 362.5 362.1 366.9 369.4 374.3
  (In millions of U.S. dollars; end of period)
Net foreign assets of the central bank (floor)5,6,7,11 67.7 40.5 52.9 67.2 72.0 83.6
New nonconcessional medium- or long-term external debt contracted or guaranteed by the government or the central bank2 0.0 0.0 0.0 0.0 0.0 0.0
Outstanding stock of short-term external debt contracted or guaranteed by the government or the central bank2,7 0.0 0.0 0.0 0.0 0.0 0.0
Outstanding external payments arrears (ceiling)2,8 11.9 0.0 0.0 0.0 0.0 0.0
  (In billions of Guinean francs; unless otherwise specified; end of period)
Central government nonmining revenue2,9 147.1 299.4 448.8 630.6 180.0 367.2
  Of which: customs revenue2,9 87.4 187.4 286.7 403.7 113.9 229.8
Central government noninterest current expenditure 2/ 9/ 136.3 284.7 425.5 570.4 156.5 320.7
Current public expenditure in priority sectors9,10 12.9 10.7 17.9 15.6 17.9 20
Repayment of domestic arrears2,9 7.3 0.5 -0.6 -4.5 0.0 0
Memorandum item:            
  Nonproject external financial assistance (in millions of US dollars)2,9 1.1 0.0 23.3 33.9 0.0 23.3

1On a commitment basis; the domestic primary balance is defined as the difference between total revenue (excluding grants) and noninterest domestic expenditure (excluding foreign-financed capital expenditure).
2Cumulative from the beginning of the respective calendar year of the test date.
3Excluding government paper issued in counterpart of the revaluation of the stock of gold.
4To be adjusted downward/upward for any cash settlement of domestic arrears lower/higher than indicated.
5For purposes of the program, during 2002 gold will be valued at the U.S. dollar price established for end-December 2001.
6To be adjusted upward for any new accumulation of external payments arrears, or cash settlement of such arrears inferior to the program’s projections.
7Excluding commercial credits.
8Excluding arrears under negotiation with creditors, monitored on a continuous basis.
9Does not constitute a performance criterion.
10Priority sectors are defined to include public health, education, road maintenance, justice, rural development, urban planning, and social affairs. Theprecise definition of these expenditures is contained in the annexed Technical Memorandum of Understanding (Appendix I, Attachment II).
11Excluding changes in deposits from international bodies and institutions
.

Table 6. Guinea: Structural Measures
(** = Performance Criterion)
(* = Structural Benchmarks)

  Test Date

I. Public Finances  
1. Customs administration department:  
- Survey customs personnel Done
(i) Elaborate a manual of procedure for the customs administration and define job descriptions for each staffing position
On-going
(ii) Pursue the work under way for the adoption of the statute of customs personnel
On-going
2. Tax administration department  
- Strengthen the large tax payers unit by :  

(i) improving the management of tax payers files and the follow-up of delinquent tax payers

Continuous

(ii) updating the tax payers' file quarterly starting from

September 2002**
- Define a minimum turnover for large enterprises and follow these closely Continuous
- Strengthen tax audit procedures and guide by:
(i) improving the synergy and liaison between the investigation and research division, the tax payers' file management division and the tax audit division
Continuous
(ii) setting up a database for the investigation and research division
June 2002
- Strengthen the accounting network by setting up a single procedure for the handling and management, by type of taxes, of overdue tax obligations September 2002
- Follow-up enterprises benefiting from exemptions of preferential tax regimes by:
(i) updating quarterly beneficiaries' file, following up on these enterprises compliance with their obligations, and quantifying budgetary revenues forgone
June 2002
(ii) verifying beneficiaries' compliance with their obligations, and eliminating unjustified exemptions
On-going
- Strengthen documentation by:
(i) updating and disseminating the tax payers' guide
End June 2002
(ii) elaborating the general tax code by merging and updating all tax laws and regulations
March 2003
3. Treasury's department  
- Link Treasury's accounts to the computerized expenditure-tracking system December 2002*
- Close all dormant extra-budgetary accounts June 2002
- Consolidate all public accounts in a single Treasury account September 2002
- Recover all tax claims in dispute from previous fiscal years January 2003
- Begin audit of the 2001 balance sheet of all enterprises not having been subject to a tax audit forthe last three years, and having filed for VAT credit September 2002**
- Issue an instruction from the finance ministry prohibiting the recording of spending commitments in the computerized expenditure-tracking system for any given month after the 5th day of the following month June 2002
4. Department of debt and public investment  
- Make the external debt unit operational June 2002
- Produce external debt statistics on a monthly basis showing debt service: due, paid, rescheduled, and arrears if it is the case, and transfers of HIPC debt relief to the HIPC account at the Central Bank Monthly, from May 2002
II. Monetary Reforms, Banking Supervision and Restructuring  
5. Strengthen banking supervision by :  
- Issuing instructions and regulations governing prudential ratios so as to bring them closer in line with international standards (Basel Core Principles) End-December 2002**
- Concluding agreements to exchange information with foreign banking supervisors End-December 2002
6. Revise the banking law and submit it to Parliament April 2003
7. Define and put in place the newly restructured banking supervision directorate June 2002
8. Regarding banks' accounting plan:
- Finalize volume 3 October 2002
- Computerize the plan December 2002
9. Define a package of measures to fight money laundering March 2003*
10. Regarding supervision of micro-finance institutions:
- Elaborate prudential ratios June 2002
- Put in place off site inspection rules September 2002*
- Define a methodology for on-site inspections October 2002
11. Implement recommendations of MAE technical assistance mission of December 2001 on improving liquidity management and forecasting. End December 2002

 

Guinea

Technical Memorandum of Understanding on Definitions and Modalities of the Built-In Contingency Mechanism for the Adjustment of Quantitative Performance Criteria and Benchmarks Under the Second Annual Program Under the PRGF Arrangement

I. Introduction

1. This memorandum sets out the understandings between the Guinean authorities and staff of the International Monetary Fund regarding the definitions of the quantitative performance criteria and benchmarks for the program supported by the PRGF arrangement, the built-in contingency mechanism, and the related reporting requirements.

II. Definitions

A. External Debt

2. The size and rate of growth of external indebtedness are important factors in the design of a program for a country, especially one benefiting from HIPC Initiative assistance like Guinea. For purposes of the program, "debt" will be understood to mean current, i.e., not contingent, liability, created under a contractual arrangement through the provision of value in the form of assets (including currency) or services, and which requires the obligor to make one or more payments in the form of assets (including currency) or services, at some future point(s) in time; these payments will discharge the principal and/or interest liabilities incurred under the contract. Debt can take a number of forms, the primary ones being the following:

  • Loans. Advances of money to the obligor by the lender on the basis of an undertaking that the obligor will repay the funds in the future (including deposits, bonds, debentures, commercial loans, and buyers' credits) and temporary exchanges of assets that are equivalent to fully collateralized loans under which the obligor is required to repay the funds, and usually pay interest, by repurchasing the collateral from the buyer in the future (such as repurchase agreements and official swap arrangements);

  • Suppliers' credits. Contracts where the supplier permits the obligor to defer payments until some time after the date on which the goods are delivered or services are provided; and

  • Leases. Arrangements under which property is provided that the lessee has the right to use for one or more specified period(s) of time, which are usually shorter than the total expected service life of the property, while the lessor retains the title to the property. For the purpose of this memorandum, the debt is the present value (at the inception of the lease) of all lease payments expected to be made during the period of the agreement, excluding those payments that cover the operation, repair, or maintenance of the property.

3. Under this definition of debt, arrears, penalties, and judicially awarded damages arising from failure to make payment under a contractual obligation that constitutes debt are debt. Failure to make payment on an obligation that is not considered debt under this definition (e.g., payment on delivery) will not give rise to debt.

B. Concessionality of External Debt

4. Debt is considered concessional if it has a grant element equivalent to 35 percent or more using the available currency-specific commercial interest reference rate (CIRR) and following the methodology set out in staff paper SM/96/86 (4/8/96) and approved by the IMF Executive Board on April 15, 1996.

C. External Debt Performance Criteria

5. The performance criterion on the outstanding stock of short-term external debt contracted or guaranteed by the government or by the central bank covers outstanding external debt with original maturity of one year or less. The performance criteria on new nonconcessional medium- or long-term external debt contracted or guaranteed by the government or the central bank covers external debt with original maturity of more than one year; this performance criterion applies not only to "debt" as defined in this memorandum, but also to commitments contracted or guaranteed for which value has not been received.

D. Cash Relief from External Debt Rescheduling

6. For the purpose of the program, the only debt relief that will be subject to the contingency mechanism described below is one that leads to an effective reduction in programmed debt service. This excludes debt relief given on debt that has been in drawn-out rescheduling/restructuring negotiations with non-Paris Club creditors and for which no debt service has been paid in the past year, for example, debts to be considered under the debt-and debt-service-reduction operation with commercial creditors, and for which no provision in debt service has been explicitly made in the fiscal program (except for up-front costs).

E. Domestic Arrears

7. Domestic arrears are the unstructured domestic debt contracted by the government vis-à-vis the nonbank sector. Unstructured debt is defined as debt that has not yet been subject to an agreement, cash payment, or securitization. Its major components are wage and salary debt; commercial debt; rental debt; debt arising from indemnities and expropriations; tax or customs benefits, allowances, or overcollections payable to third parties; and debt under the social plans associated with public enterprise restructuring. For the purpose of the program, the change in domestic arrears is defined as the sum of (i) payments made for earlier fiscal years (technical lag) for which commitments or payment orders have already been issued; (ii) the accumulation of obligations during the year as a result of the difference between actual obligations and payments; (iii) the change in checks outstanding/payables, or the reduction or accumulation attributable to payment orders covered by checks issued during the year; and (iv) the reduction in obligations through the issue of securities in respect of committed expenditure.

F. Net Claims of the Banking System on the Government

8. Net claims of the banking system on the government comprise the stock of all outstanding claims on the government (loans, advances, and all other government debt instruments, such as government securities with initial maturities of over 30 days) less all deposits held by the government with the banking system.

G. Domestic Debt

9. The domestic debt includes all current—and unconditional—obligations arising from a contractual agreement concluded or guaranteed by the Guinean government, with a resident partner, as the counterpart to an interest that may take the form of assets (including cash) or services and by virtue of which the obligor must subsequently make one or several payments in the form of assets (including cash) or services in repayment of the principal and/or interest arising from the contractual obligation.

H. Primary Balance of the Budget

10. The primary budget balance (commitment basis) is calculated as total government revenue, excluding foreign grants and privatization proceeds (counted as financing), less noninterest expenditure, excluding foreign-financed investment expenditure.

I. Central Government Expenditure in Priority Sectors

11. The priority sectors include public health, education, the road infrastructure, justice, rural development (agriculture, fisheries, livestock, and village-level water resources), town planning, and social affairs. For the purpose of the program, expenditure in priority sectors shall include spending under Title 3 (operations) and Title 4 (interventions and transfers), excluding universities.

J. External Arrears

12. External arrears of the government or the BCRG consist of all overdue debt-service obligations (i.e., payments of principal and interest) arising in respect of loans contracted or guaranteed by the government or the BCRG, unpaid penalties or interest charges associated with these arrears. Thus defined, external arrears amounted to US$2.285 million at end-December 2001.

K. Government

13. Unless otherwise noted, the government is meant to include the central government. Local governments are excluded from the definition of government.

L. Government Revenue

14. Government revenue includes tax, nontax revenue, and capital revenue. Tax and nontax revenue are defined in accordance with Government Finance Statistics (GFS) 1986, section IV.A.1. The Ministry of Economy and Finance will report total revenue to the IMF on a monthly basis and within 10 days of the end of each month using the following categories. For tax revenue, the main categories are taxes on income, profit and capital gains (Title 1); taxes on property (Title 2); taxes on international trade (Title 3), including import duties, the export duty (droit fiscal de sortie), the surtax on consumption, the liquidation levy (redevance de liquidation) and penalties related to international trade; taxes on goods and services (Title 4), including general sales taxes value-added taxes on domestic sales and on imports, the single tax on vehicles (TUV), the TAF, taxes on petroleum products, and (export) taxes on mining products, including the tax on mining products, taxes on diamonds, and taxes on precious metals. Other tax revenue includes stamp taxes and revenue from recording taxes. Tax receipts also incorporate the taxes assumed by the State. Nontax revenue is defined as property income, including dividends, revenue from fishing licenses, revenue from the sale of telephone licenses, revenue from the rental of infrastructure, revenue for services rendered, administrative duties and fees and other receivables, including payments for the Minusil. For the purpose of the program, capital revenue includes revenue from the sale of fixed assets, excluding revenue from privatization, (which is presented as a separate item) and includes repayment of loans by public enterprises.

15. For the purpose of the program, nonmining revenue is defined as the sum of (i) taxes on revenue and profits (Title 1) minus the income tax paid by mining companies; (ii) taxes on property (Title 2);other tax receipts (Title 5); (iii) taxes on goods and services minus the proceeds from taxes on mining products (Title 4, Chapter 42); taxes on international trade (Title 3).

M. Public Accounts with the BCRG and Primary Banks

16. The attached Table 2 defines the public accounts, which determine the net treasury position (NTP) vis-à-vis the Central Bank of the Republic of Guinea (BCRG) and the primary banks. The NTP excludes all accounts of nongovernmental organizations (NGOs), public enterprises, and public establishments with the BCRG and the primary banks, with the exception of those of the National Social Security Fund (CNSS), as well as pilgrimage accounts. For the purpose of the program, the NTP covers all accounts of the central government, as well as certain operations against counterpart fund accounts with the BCRG, except project accounts denominated in foreign exchange. The list of accounts making up the NTP for the purpose of the program is provided in the attached Table 3.

17. In order to reflect the accounting lag between commitments and cash disbursements in the case of the imprest accounts of government administration (comptes de régies), of these of the republic institutions, and of decentralized accounting officers, the government flow of funds table (TOFE) includes an adjustment item. The list of accounts making up this adjustment item is provided in the attached Table 4.

N. Privatization Receipts

18. For the purpose of this memorandum, privatization receipts will be understood to mean all monies received by the government through the sale or concessioning of a public company, organization, or facility to a private company or companies, organization(s), or individual (s). To the extent possible, receipts should be presented on gross basis; if costs are incurred in the sale or concessioning, they should be recorded separately as expenditure.

O. Net Foreign Assets

19. Net foreign assets include the official reserves of the central bank net of external obligations valued at the following fixed exchange rates that prevailed on December 31, 2001, i.e., US$1 = Є 1.117. They comprise holdings of monetary gold, the reserve position in the International Monetary Fund, SDR holdings, and short- and long-term foreign assets, net of external obligations. They exclude the amounts pledged or otherwise encumbered.

P. Central Bank Money

20. Central bank money comprises bank reserves and deposits of the private sector with the central bank, as well as cash in circulation.

III. Modalities of the Built-In Contingency Mechanism for the Adjustment of Quantitative Performance Criteria and Benchmarks

21. In view of uncertainties about program financing, the program contains built-in contingency mechanisms for the adjustment of the quantitative criteria and benchmarks relating to the ceilings on the increase in the net claims of the banking system on the central government (performance criterion).

A. Deviations from Programmed External Assistance and Reductions in Domestic Arrears

22. The quantitative performance criteria and benchmarks will be adjusted (i) upward for a shortfall in exceptional external financing (i.e., program financing and external debt relief) up to an amount equivalent to 75 percent of the shortfall, not to exceed US$25 million); and (ii) downward for the full amount of any excess in external assistance (i.e., program financing and external debt relief).

23. For the purpose of the program, the criterion on net domestic credit to the government will be adjusted by the amount of any net accumulation of domestic arrears.

24. For the purpose of the program, the banking system's outstanding claims on the government will be adjusted downward by the amount of government securities held by the public prior to December 31, 2001 and discounted with the banking system during 2002.

B. Program Exchange Rate

25. Amounts denominated in SDRs will be converted to U.S. dollars at the fixed exchange rate of US$1.273 per SDR, and converted into Guinean francs at exchange rates agreed with the authorities. IMF liabilities, which are included in the definition of net foreign assets, will be valued at projected exchange rates. Any deviations in those amounts will lead to a full upward or downward adjustment, as appropriate, in the valuation of the stock of IMF liabilities at the central bank.

IV. Reporting requirements

26. The authorities will send the data in Table 1 to the Fund within the time limits set out in that table 1. Barring any indication to the contrary, the data will take the form mutually agreed by the authorities and the IMF. The authorities will supply the Fund with any additional information that the Fund requests in connection with monitoring performance under the program on a timely basis. In the event of any accumulation of external arrears, the government will so inform Fund staff immediately.

Table 1. Guinea: Data Reporting Requirements

Category of Data Table/Report Frequency Deadline

Financial and monetary data Central bank balance sheet, consolidated commercial bank, balance sheet, monetary survey. Monthly 15th of the month for the previous month
Interest rates. Monthly 15th of the month for the previous month
HIPC Initiative Central Bank of Republic of Guinea account transactions. Monthly 15th of the month for the previous month
Detailed Net Treasury Position (NTP) and Net Government Position (NGP). Monthly 10 th of the month for the previous month
Fiscal data Table of indicators (tableau de bord), including details on revenues, expenditures, financing, and cash-flow operations. Monthly 10th of the month for the previous month
Treasury balances (balances générales du Trésor). Monthly 10 th of the month for the previous month
Cash-flow plans (plan de trésorerie). Monthly 10th of the month for the previous month
Monthly government financial operations table (TOFE). Monthly 15th of the month for the previous month
Monthly expenditure reports by ministries in expenditure circuit (chaine des dépenses). Monthly 10th of the month for the previous month
HIPC Initiative spending plans and budget execution. Monthly 15th of the month for the previous month
Real sector data Consumer price index, Conakry. Monthly 10th of the month for the previous month
National accounts. Annual Summary estimates: six months after the end of year
Balance of payments data Imports by use and exports by major product, trade balance. Monthly 25th of the month for the previous month
Price and volume indices of imports and of exports. Quarterly One month after end of quarter
Consolidated estimates of the balance of payments. Annual Summary estimates: six months after the end of year
External debt Debt service due before and after debt relief. Monthly 15th of the month for the previous month
Cash debt service paid. Monthly 15th of the month for the previous month
Debt service reconciliation table ("access table"). Monthly 15th of the month for the previous month
Stock of outstanding debt and arrears. Monthly 15th of the month for the previous month
Drawings on new loans. Monthly 15th of the month for the previous month
External grants and loans Disbursements. Monthly 15th of the month for the previous month
  Monthly transfer of HIPC debt relief to the HIPC account of the central bank (compte générique) Monthly 15th of the month for the previous month

Table 2. Guinea: Classific ation of Public Accounts with the
BCRG/Commercial Banks

Category

Financing

Holder(s)

BCRG Classification
Analytical Code

Heading(1)

Series No. (2)


State Government budget Individual and special accounting officers Central government 41-11 0
Central government Government budget Decentralized government accountants Central government 41-11, 41-21 A 1
  Government budget Administrations, ministries, and public agencies Central government 41-11 2
  Government budget Republican institutions Central government 41-11 3
  Government budget Projects/programs Central government 41-11, 41-12, 41-13 4
  Government and other budgets CAS, assistance funds (special operations with earmarked resources) Central government 41-11 5

Decentralized governments

Local budgets Accounting officers of decentralized governments

Local government

41-21, 41-21 A 6

Counterpart funds

Various external donors Counterpart funds

Counterpart funds

41-24, 41-25. 49-18 7

Public agencies

Government subsidy and own resources CNSS

Nonfinancial public enterprises

41-31 and 41-32 8

Table 3. A List of Accounts Included in the TOFE Adjustment Item

Account
No.

Name of Account

Date
Opened

Purpose

Signing Authority


41-11-009 Institute for Linguistic Research (national languages) 12/5/91 Institute operations Minister of Education, Institute Director
41-11-010 "Monts Nimba" Scientific Research Station [Imprest] Fund 3/2/99 Scientific research "Monts Nimba" Director
41-11-014 Applied Biology and Research Station [Imprest] Fund 3/2/99 Institute operations Director Chief DA
41-11-015 Labé Environmental Documentation Center 3/2/99 Center operations Center Director
41-11-017 Bossou Environmental Research Institute [Imprest] Fund 3/2/99 Institute operations Institute Director
41-11-100 Office of the President of the Republic (PRG)/Palais des Nations n/a Unit operations n/a
41-11-103 Monchon Project 6/13/89 Project operations Minister, Project Director
41-11-109 National Islamic League [Imprest] Fund 1992 League operations Secretary General, Chief of Staff, Director of Administrative and Financial Affairs (DAAF)
41-11-118 Dixinn Treasury Communal Receipts 4/26/91 Government budget Communal Mayor, Communal Receiver
41-11-120 Matoto Treasury Communal Receipts 4/26/91 Government budget Communal Mayor, Communal Receiver
41-11-126 National Literacy Service 10/13/89 Service operations Secretary of State
41-11-154 National Geology Laboratory 4/17/90 Laboratory operations Minister, Secretary General, C/CAB, National Director
41-11-155 Water Energy Ministry [Imprest] Fund 4/26/99 Imprest fund Minister, DA [Director of Administration?]
41-11-164 Conakry Disinfection Project Project operations n/a
41-11-174 Rural Credit Project 8/29/90 Project operations Director, National Coordinator
41-11-178 Children's Health and Nutrition Project 8/31/90 Project operations Nutrition Institute Director, Chief SAAF
41-11-180 Permanent Agricultural Statistics System 9/14/90 Program operations Director, Manager
41-11-195 Referendum Organization Fund 10/8/90 Org. of Referendum on 1990 Constitution Min. Interior & Decentralization, Min. Justice
41-11-199 COUC/UC/FDC/CEE management capacity building 6/9/1994 Project operations Rector, Manager/DAAF
41-11-201 Urbanization and Housing Ministry Imprest Fund 7/28/94 Ministry operations n/a
41-11-204 Support for Village Actions 1/30/91 Project operations Manager
41-11-208 Ministry National Defense [Imprest] Fund 3/7/1991 Ministry operations Minister, Manager
41-11-217 DAAF/MERS 4/8/1991 Imprest fund Minister, DAAF
41-11-224 Donka Hospital Rehabilitation Fund 5/29/91 Unit operations Minister, Project Chief
41-11-225 Project and Technical Cooperation Service 6/6/1991 Service operations Minister, Director
41-11-229 Administrative Development Center (CPA) 6/20/91 Center operations Director General, Manager
41-11-235 Ministry of Justice Imprest Fund 3/28/91 Ministry operations Secretary General, DAAF
41-11-237 Ministry of Employment/ Civil Service Imprest Fund 12/7/1994 Ministry operations Manager, Financial Unit
41-11-240 Restructuring Post & Telecommunications 8/3/95 Program operations Director, DAAF
41-11-249 DAAF Min. Tourism and Hotels 4/28/98 Ministry operations n/a
41-11-274 Sovereignty expenditures/PRG n/a. Sovereignty expenditures n/a
41-11-279 National Educational Institute 5/8/1986 Institute operations Minister, Director General
41-11-285 National Directorate of the Economy Support Project 9/15/99 Project operations National Director, Chief Summary Section
41-11-288 Government Procurement Board 9/15/99 Board operations National Director
41-11-289 Infant and Maternal Health 1/31/87 Project operations Minister, DAAF, WHO Official
41-11-294 Police n/a n/a n/a
41-11-302 Cité des Nations 9/7/92 Imprest fund Secretary General
41-11-303 National Fisheries Science Center 1992 Center operations Director General, SAF [?]
41-11-306 Guinean Topography and Cartography Institute Institute operations Minister, Director General
41-11-309 Customs Mobile Brigade Imprest Fund 2/11/93 Imprest fund National Director Customs
41-11-311 Tourism Development Promotion Fund 1993 Tourism Promotion Minister Tourism
41-11-325 Administration and Control of Large Projects/ Operations 4/19//96 Administration operations General Manager, DAAF
41-11-329 Technical and Cultural Cooperation Agency 6/11/96 Agency operations DA Foreign Affairs, EST [?]
41-11-330 Army HQ 8/1/96 HQ operations Chief of Staff
41-11-331 Office of Prime Minister 8/8/96 Office operations Prime Minister, DAAF
41-11-332 Ministry of Finance Imprest Fund 10/10/96 Ministry operations DAAF
41-11-333 Office of the President of the Rep. Imprest Fund 10/7/96 Ministry operations Secretary General PRG, DAAF
41-11-334 Ministry of Energy and Natural Resources Imprest Fund 10/11/96 Ministry operations Manager
41-11-335 Ministry of National Education Imprest Fund 10/7/96 Ministry operations Manager
41-11-337 Vocational Training and Technical Education Ministry Imprest Fund 10/7/96 Ministry operations Minister, DAAF
41-11-339 Ministry of Transport Imprest Fund 10/7/96 Ministry operations Chief of Staff, DAAF
41-11-340 Private Sector and Industry Promotion Ministry Imprest Fund 9/27/96 Ministry operations Secretary General, DAAF
41-11-341 Ministry of Territorial Administration Imprest Fund 10/14/96 Ministry operations Chief of Staff, Manager
41-11-343 Ministry of Communications Imprest Fund 10/14/96 Ministry operations Manager
41-11-344 Ministry of Agriculture, Livestock and Forestry Imprest Fund 10/3/96 Ministry operations Minister, DA
41-11-345 Ministry of Social Affairs and the Promotion of Women Imprest Fund 10/16/96 Ministry operations Minister, DAAF
41-11-347 Ministry of Fisheries Imprest Fund 10/10/96 Ministry operations Secretary General, DAAF
41-11-353 Receiver for Taxes/ Large Enterprises 3/10/97 VAT credit refunds National Director, Special Receiver for Taxes
41-11-355 High Chancellery of the Ordre National du Mérite 3/12/97 Chancellery operations High Chancellor, DAAF
41-11-356 Economic and Social Development Project (PADES) 6/10/97 Project operations National Coordinator, Accountant
41-11-361 Economic and Social Council 7/10/97 IGF operations President, Admin. And Financial Officer
41-11-362 National Directorate of the Treasury Imprest Fund 7/21/97 Directorate operations Manager
41-11-369 Ministry of Security Imprest Fund 11/12/97 Ministry operations Minister, Manager
41-11-371 National Tourism Office Imprest Fund 11/24/97 Office operations Director General, Manager
41-11-374 Road Maintenance [Imprest] Fund 12/31/97 Imprest Fund National Director, Roads Investment
41-11-375 Miscellaneous Remuneration Inspectorate General Armed Forces 12/27/98 Payment of Remuneration Minister of Defense, Quartermaster General
41-11-376 National Portfolio Directorate Imprest Fund 1/28/98 Directorate operations National Portfolio Director
41-11-382 Billeteur, Ministry of Pre-University Education (MEPU) 7/1/98 Payment of Ministry salaries by billetage DAAF, MEPU billeteur
41-11-383 "Centenaire du Souvenir" (centennial) 7/24/98 Organizing committee operations Manager
41-11-385 Education Project III/FAD 9/10/98 Counterpart National Budget Manager/MEPU
41-11-386 Education Project I & II/OPEC 9/10/98 Counterpart National Budget Manager/MEPU
41-11-390 Construction Donka Hospital Center 1/5/99 Subsidy Minister Public Health, DAAF
41-11-392 Technical and Scientific University Documentation & Research Center (CEDUST) [Imprest] Fund 3/11/99 Center operations CEDUST Director
41-11-394 Treasury Bearer Certificates n/a Bearer certificates n/a
41-11-395 Military Supply Center n/a Center operations n/a
41-11-397 Public Lighting [Imprest] Fund 7/25/00 Imprest Fund National Directorate of the Treasury
41-11-398 Local Government Renovation Project 10/19/00 Renovation former National Social Security Fund National Director of the Treasury, National Director of Investments
41-11-450 State Property Imprest Fund 1/28/99 Directorate operations Director, PBP
41-11-451 Agricultural Exports Promotion Umbrella Project 3/14/00 Project operations Director, DAAF
41-11-457 Military Engineering Battalion Imprest Fund 3/29/00 Imprest Fund Commandant, Treasurer
41-11-459 Institutional Capacity-Building Program 5/5/00 Program operations Program Administrator, CCAF
41-11-460 Legislative & Communal Elections 5/17/00 Imprest Fund MATD/MEF Advisor
41-11-461 School Exams Min. Pre-University Education and Civic Education 99/00 5/22/00 Imprest Fund DAAF, Accounting & Finance Unit Inspector
41-11-462 School Exams Min. Technical Education & Training 5/22/00 Imprest Fund DAAF, Accountant
41-11-463 Restoration Conakry Central Mosque 5/24/00 Imprest Fund Secretary General/MEF, Secretary General/Islamic League, DAAF
41-11-464 Anti-Corruption Committee 6/13/00 Imprest Fund Coordinator
41-11-466 National Directorate of Financial Control Imprest Fund 7/6/00 Imprest Fund National Director of Financial Control, Manager
41-11-467 Gender & Development Umbrella Program 11/2/00 Program operations Coordinator, Accountant
41-11-696 State Secretariat for Cooperation Imprest Fund 11/22/00 Department operations Secretary of State, Chief of DAAF
41-11-760 State Inspectorate General Imprest Fund 11/14/00 IGF operations State Inspector General, Accounting/Financial Unit Inspector
41-11-763 Ministry of Youth & Sports Imprest Fund 5/21/92 Ministry operations Minister, DAAF
41-11-766 State Inspectorate General Imprest Fund n/a n/a n/a
41-11-805 Roads Engineering Imprest Fund 12/3/99 Road maintenance Minister, BATA Commandant
41-11-815 Roads Fund Special Account 9/6/89 Road maintenance National Director of Road Maintenance, DAAF
41-11-817 Ratoma Communal Revenues n/a Government budget Mayor, Receiver General of the Treasury
41-11-822 Dubréka Prefectural Treasury 5/17/91 Government budget Treasurer
41-11-826 Second Urban Project 2/2/94 Project operations Minister of Territorial Administration, Minister of Economy & Finance
41-11-830 National Assembly 9/12/95 Assembly operations Speaker, Admin. and Financial Officer
41-11-833 Securities Exchange Project 6/2/99 Project operations Project Chief
41-11-836 Works for Opening of Cross-Country Roads 11/20/89 Imprest Fund National Director, Manager
41-11-838 "Plaidoyer" Project 10/13/99 Project operations Coordinator
41-11-857 National Agricultural Extension Service 7/31/90 Service operations Director General, DAAF
41-11-859 National Forestry Project 7/31/90 Project operations National Director, Accountant
41-11-861 State Judicial Agency 10/27/93 Agency operations State Judicial Agent, Manager
41-11-866 National Communications Council 1/13/93 Council operations President, DAAF
41-11-867 Supreme Court 1/26/93 Court operations President, DAAF
41-11-876 State Judicial Agency Imprest Fund 11/18/93 Fund operations State Judicial Agent, Manager
41-11-879 Ministry of Planning Imprest Fund 10/7/96 Ministry operations Manager
41-11-910 Ecomog Participation Fund 2/16/91 Government subsidy to West African troops Minister of Economy & Finance, Minister of Security
41-11-913 Kaloum Communal Revenues 4/26/91 Government budget Receiver General of the Treasury
41-11-915 Matam Communal Revenues 4/26/91 Government budget Receiver General of the Treasury
41-11-916 Garafiri Project 8/9/93 Project operations Director General, Advisor, Administrative Unit
41-11-927 IDRC 100116"MESRS" (Higher Education) 9/23/99 Program operations MESRS Advisor, Accountant
41-11-934 Program Monitoring Committee 11/2/99 Committee operations National Director of the Treasury, Advisor to Central Bank of the Republic
41-11-935 S.E.N.A.R.E.C. (Capacity-Building) 12/16/99 Unit operations Advisor to Prime Minister
41-11-962 Kindia Development & Architecture Documentation Center Imprest Fund 8/29/91 Center operations Chief of Center
41-11-964 Education Interim Budget 8/29/91 Program operations Project Director, National Director, Cooperation
41-11-969 HQ Navy 10/14/91 Unit operations Chief of Staff
41-11-972 Ministry Foreign Affairs Imprest Fund 11/14/91 Ministry operations DAAF, Accountant
41-11-988 1992 Census 5/11/92 Project operations Minister
41-11-989 FOUTA DJALLON Rural Development Project 7/9/97 Project operations Coordinator, Manager
41-11-995 National Directorate of Public Investment Imprest Fund 7/17/92 Directorate operations DAAF
41-12-055 National Development Information and Documentation Center (CENDID) 5/29/89 Center operations Center Director
41-12-923 National Directorate of Scientific and Technical Research 7/7/00 Directorate operations National Director of Scientific Research
41-12-072 Conakry Main Treasury 1985 Government budget Governor, Senior Treasurer
41-21A-108 DPE Mandiana
41-21A-110 Education Inspectorate General
41-21A-113 Kouroussa Prefectural Treasury
41-21A-118 Customs Revenue Treasury
41-21A-119 DPE Kankan
41-21A-120 DPE Kouroussa
41-21A-202 Labé Prefectural Treasury
41-21A-206 Customs Revenue FD
41-21A-212 Labé Main Treasury
41-21A-215 Labé DPE
41-21A-302 Koundara Treasury
41-21A-303 Boké Prefectural Treasury
41-21A-304 Boké Main Treasury
41-21A-401 N'zérékoré Prefectural Treasury
41-21A-404 N'zérékoré IRE
41-21A-405 N'zérékoré Main Treasury
41-21A-406 Yomou Prefectural Treasury
41-21A-413 Coffee Sector Rehabilitation
41-21A-501 Mamou Main Treasury
41-21A-502 Faranah Main Treasury
41-21A-601 Kindia Main Treasury
41-31-153 General Agency for the Completion of Public Works in Favor of Employment in Guinea 8/4/00 Agency operations President

Table 4. List of Accounts Included in the TOFE Adjustment Item

Order No. Account No. Name of Account Classification Codes Date Opened Purpose Signing Authority


Cat. NTP

3 41-11-009 Institute for Linguistic Research (national languages) 2 NTP & NGP 12/5/91 Institute operations Minister of Education, Institute Director
4 41-11-010 "Monts Nimba" Scientific Research Station Imprest Fund 2 NTP & NGP 3/2/99 Scientific research "Monts Nimba" Director
7 41-11-014 Applied Biology and Research Station Imprest Fund 2 NTP & NGP 3/2/99 Institute operations Director Chief DA
8 41-11-015 Labé Environmental Documentation Center 2 NTP & NGP 3/2/99 Center operations Center Director
10 41-11-017 Bossou Environmental Research Institute Imprest Fund 2 NTP & NGP 3/2/99 Institute operations Institute Director
26 41-11-100 Office of the President of the Republic (PRG)/Palais des Nations 2 NTP & NGP n/a Unit operations n/a
31 41-11-109 National Islamic League Imprest Fund 2 NTP & NGP 6/14/05 League operations Secretary General, Chief of Staff, Director of Administrative and Financial Affairs (DAAF)
39 41-11-118 Dixinn Treasury Communal Receipts 1 NTP & NGP 4/26/91 Government budget Communal Mayor, Communal Receiver
41 41-11-120 Matoto Treasury Communal Receipts 1 NTP & NGP 4/26/91 Government budget Communal Mayor, Communal Receiver
45 41-11-126 National Literacy Service 2 NTP & NGP 10/13/89 Service operations Secretary of State
64 41-11-154 National Geology Laboratory 2 NTP & NGP 4/17/90 Laboratory operations Minister, Secretary General, C/CAB, National Director
65 41-11-155 Water Energy Ministry Imprest Fund 2 NTP & NGP 4/26/99 Imprest fund Minister, DA [Director of Administration?]
84 41-11-178 Children's Health and Nutrition Project 4 NTP & NGP 8/31/90 Project operations Nutrition Institute Director, Chief SAAF
100 41-11-199 COUC/UC/FDC/CEE management capacity building 4 NTP & NGP 6/9/1994 Project operations Rector, Manager/DAAF
102 41-11-201 Urbanization and Housing Ministry Imprest Fund 2 NTP & NGP 7/28/94 Ministry operations n/a
108 41-11-208 Ministry National Defense [Imprest] Fund 2 NTP & NGP 3/7/1991 Ministry operations Minister, Manager
108 41-11-208 Ministry of NationalDefense Imprest Fund NTP & NGP 3/7/91 Ministry operations Minister, Manager
115 41-11-217 DAAF/MERS 2 NTP & NGP 4/8/1991 Imprest fund Minister, DAAF
120 41-11-225 Project and Technical Cooperation Service 4 NTP & NGP 6/6/1991 Service operations Minister, Director
126 41-11-235 Ministry of Justice Imprest Fund 2 NTP & NGP 3/28/91 Ministry operations Secretary General, DAAF
139 41-11-249 DAAF Min. Tourism and Hotels 2 NTP & NGP 4/28/98 Ministry operations n/a
151 41-11-288 Government Procurement Board 2 NTP & NGP 9/15/99 Board operations National Director
163 41-11-302 Cité des Nations 2 NTP & NGP 9/7/92 Imprest fund Secretary General
170 41-11-309 Customs Mobile Brigade Imprest Fund 2 NTP & NGP 2/11/93 Imprest fund National Director Customs
179 41-11-325 Administration and Control of Large Projects/ Operations NTP & NGP 4/19//96 Administration operations General Manager, DAAF
186 41-11-332 Ministry of Finance Imprest Fund 2 NTP & NGP 10/10/96 Ministry operations DAAF
187 41-11-333 Office of the President of the Republic Imprest Fund 2 NTP & NGP 10/7/96 Ministry operations Secretary General PRG, DAAF
188 41-11-334 Ministry of Energy and Natural Resources Imprest Fund 2 NTP & NGP 10/11/96 Ministry operations Manager
189 41-11-335 Ministry of National Education Imprest Fund 2 NTP & NGP 10/7/96 Ministry operations Manager
191 41-11-337 Vocational Training and Technical Education Ministry Imprest Fund 2 NTP & NGP 10/7/96 Ministry operations Minister, DAAF
193 41-11-339 Ministry of Transport Imprest Fund 2 NTP & NGP 10/7/96 Ministry operations Chief of Staff, DAAF
194 41-11-340 Private Sector and Industry Promotion Ministry Imprest Fund 2 NTP & NGP 9/27/96 Ministry operations Secretary General, DAAF
195 41-11-341 Ministry of Territorial Administration Imprest Fund 2 NTP & NGP 10/14/96 Ministry operations Chief of Staff, Manager
197 41-11-343 Ministry of Communications Imprest Fund 2 NTP & NGP 10/14/96 Ministry operations Manager
198 41-11-344 Ministry of Agriculture, Livestock and Forestry Imprest Fund 2 NTP & NGP 10/3/96 Ministry operations Minister, DA
199 41-11-345 Ministry of Social Affairs and the Promotion of Women Imprest Fund 2 NTP & NGP 10/16/96 Ministry operations Minister, DAAF
201 41-11-347 Ministry of Fisheries Imprest Fund 2 NTP & NGP 10/10/96 Ministry operations Secretary General, DAAF
213 41-11-362 National Directorate of the Treasury Imprest Fund 2 NTP & NGP 7/21/97 Directorate operations Manager
219 41-11-369 Ministry of Security Imprest Fund 2 NTP & NGP 11/12/97 Ministry operations Minister, Manager
221 41-11-371 National Tourism Office Imprest Fund 2 NTP & NGP 11/24/97 Office operations Director General, Manager
223 41-11-374 Road Maintenance Imprest Fund 4 NTP & NGP 12/31/97 Imprest Fund National Director, Roads Investment
225 41-11-376 National Portfolio Directorate Imprest Fund 2 NTP & NGP 1/28/98 Directorate operations National Portfolio Director
257 41-11-457 Military Engineering Battalion Imprest Fund 2 NTP & NGP 3/29/00 Imprest Fund Commandant, Treasurer
262 41-11-463 Restoration Conakry Central Mosque 2 NTP & NGP 5/24/00 Imprest Fund Secretary General/MEF, Secretary General/Islamic League, DAAF
263 41-11-464 Anti-Corruption Committee 2 NTP & NGP 6/13/00 Imprest Fund Coordinator
265 41-11-466 National Directorate of Financial Control Imprest Fund 2 NTP & NGP 7/6/00 Imprest Fund National Director of Financial Control, Manager
269 41-11-696 State Secretariat for Cooperation Imprest Fund 2 NTP & NGP 11/22/00 Department operations Secretary of State, Chief of DAAF
270 41-11-760 State Inspectorate General Imprest Fund 2 NTP & NGP 11/14/00 IGF operations State Inspector General, Accounting/Financial Unit Inspector
271 41-11-763 Ministry of Youth & Sports Imprest Fund 2 NTP & NGP 5/21/92 Ministry operations Minister, DAAF
274 41-11-766 State Inspectorate General Imprest Fund 2 NTP & NGP n/a n/a n/a
279 41-11-805 Roads Engineering Imprest Fund 2 NTP & NGP 12/3/99 Road maintenance Minister, BATA Commandant
285 41-11-815 Roads Fund Special Account 2 NTP & NGP 9/6/89 Road maintenance National Director of Road Maintenance, DAAF
299 41-11-830 National Assembly 3 NTP & NGP 9/12/95 Assembly operations Speaker, Admin. and Financial Officer
302 41-11-833 Securities Exchange Project 4 NTP & NGP 6/2/99 Project operations Project Chief
305 41-11-836 Works for Opening of Cross-Country Roads 4 NTP & NGP 11/20/89 Imprest Fund National Director, Manager
307 41-11-838 "Plaidoyer" Project 4 NTP & NGP 10/13/99 Project operations Coordinator
317 41-11-866 National Communications Council 3 NTP & NGP 1/13/93 Council operations President, DAAF
318 41-11-867 Supreme Court 3 NTP & NGP 1/26/93 Court operations President, DAAF
325 41-11-876 State Judicial Agency Imprest Fund 2 NTP & NGP 11/18/93 Fund operations State Judicial Agent, Manager
328 41-11-879 Ministry of Planning Imprest Fund 2 NTP & NGP 10/7/96 Ministry operations Manager
357 41-11-962 Kindia Development & Architecture Documentation Center Imprest Fund 2 NTP & NGP 8/29/91 Center operations Chief of Center
365 41-11-972 Ministry Foreign Affairs Imprest Fund 2 NTP & NGP 11/14/91 Ministry operations DAAF, Accountant
377 41-11-995 National Directorate of Public Investment Imprest Fund 2 NTP & NGP 7/17/92 Directorate operations DAAF
428 41-21A-108 DPE Mandiana 4 NTP & NGP

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