Press Release: Statement by IMF Mission to the Republic of Guinea
IMF News, October 12, 2007
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- Press Release: Statement by IMF Mission to the Republic of Guinea
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Bibliographic details
- Published: October 12, 2007
Mission visit and meetings
- IMF mission visited the Republic of Guinea during September 24-October 3, 2007.
- Mission chief: Mr. Jean Le Dem.
- Meetings held with:
- President Lansana Conté
- Prime Minister Lansana Kouyaté
- Minister of Finance, Economic Affairs and Planning Dr. Ousmane Doré
- Minister of Economic and Financial Control and Transparency Mr. Saidou Diallo
- Minister of Mines and Geology Mr. Ahmed Kanté
- Governor of the Central Bank, Mr. Daouda Bangoura
- Senior officials of the government and the central bank
Preliminary program understanding
- Mission reached a preliminary understanding "ad referendum" on a three-year program that could be supported by a Poverty Reduction and Growth Facility (PRGF) arrangement.
- Conditions and approvals:
- Subject to review by Fund management and ultimately to approval by the IMF Executive Board.
- Subject to firming up financing assurances that the authorities expect to obtain from donors in the coming weeks.
- Aim to present a proposal to the IMF's Executive Board before the end of 2007.
Macroeconomic projections and fiscal priorities
- Projections under the envisaged program:
- Inflation declining from 15 % this year to 10 % next year.
- Economic growth reaching 5 percent in 2008.
- Gradual strengthening of Guinea's external position.
- Fiscal and expenditure priorities for 2008:
- Important increase in investment and social expenditures.
- Substantial increase in the education budget.
Structural reform agenda
- Program includes a strong program of structural reforms focusing on:
- Bolstering public financial management, including:
- Refraining from granting of ad hoc tax and customs exemptions.
- Refraining from extra-budgetary spending.
- Improving financial operations of the central bank.
- Improving the central bank's accounting systems and internal controls.
PRGF facility details
- PRGF is the IMF's concessional facility for low-income countries.
- PRGF-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners and articulated in the country's Poverty Reduction Strategy Paper.
- PRGF loan terms referenced:
- Annual interest rate of 0.5 percent.
- Repayable over 10 years with a 5½ year grace period on principal payments.
Statement issued on October 3 in Conakry by Mr. Jean Le Dem, IMF mission chief.