Guinea: Requests for Disbursement Under the Rapid Credit Facility and For Modification of Performance Criteria Under the Extended Credit Facility Arrangement
IMF Staff Country Reports, September 29, 2014
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Bibliographic details
- Published: September 29, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484340288.002
Executive summary — crisis, impacts, and immediate needs
- Guinea is suffering from an outbreak of Ebola, which has become a humanitarian crisis with a significant economic impact.
- Preliminary estimates suggest a negative impact on 2014 growth, which will be markedly lower.
- Government revenue is showing a substantial shortfall.
- The response to the Ebola outbreak entails additional critical spending needs.
- The exchange rate has started to depreciate.
- The authorities intend to adopt a tighter monetary policy to address the transitory balance of payments shock.
Program performance and authorities' requests
- Performance under the ECF-supported program has remained satisfactory.
- Preliminary data indicate that all performance criteria (PCs) under the program for end-June 2014 were met.
- There has been further progress with structural reform.
- The authorities requested additional IMF financial assistance to meet urgent fiscal and balance of payments needs not anticipated at the time of the recent program review.
- An augmentation of access under the ECF arrangement cannot be provided at this time because a review associated with the most recent availability date has not yet been completed due to delays in program implementation associated with the 2013 parliamentary elections.
- The authorities have requested a disbursement under the Rapid Credit Facility (RCF) because:
- the urgent balance of payments need is characterized by a financing gap that, if not addressed, would result in an immediate and severe economic disruption;
- Guinea’s balance of payments difficulties are caused primarily by a sudden exogenous shock and not by a withdrawal of financial support by donors;
- the balance of payments need is expected to be resolved within one year with no major policy adjustments being necessary.
- IMF staff supports:
- the authorities’ request for a disbursement under the RCF of 25 percent of quota (SDR 26.775 million);
- the authorities’ request for a modification of the end-September indicative targets and end-December 2014 PCs under the ECF arrangement, including program adjustors.
Policy actions endorsed or signaled
- Adopt tighter monetary policy to address the transitory balance of payments shock.
- Maintain policies guided by the objectives of the ECF-supported program while addressing urgent needs via the RCF disbursement.
- Modify program targets (end-September indicative targets and end-December 2014 PCs) to reflect the exogenous shock and needed adjustors.
Key statistics, dates, and program facts
- RCF disbursement supported: 25 percent of quota (SDR 26.775 million).
- All performance criteria for end-June 2014: preliminarily met.
- Event timeline references:
- 2013 parliamentary elections: cited as a cause of program implementation delays.
- end-June 2014, end-September 2014, end-December 2014: specific program target dates referenced.
- Publication date on the landing page: September 29, 2014.
- Page count listed: 64.
- Series/issue identifiers included on the page: Issue 298; Country Report No. 2014/298.
International Monetary Fund. "Guinea: Requests for Disbursement Under the Rapid Credit Facility and For Modification of Performance Criteria Under the Extended Credit Facility Arrangement", September 29, 2014.
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