## Press Release: Statement by IMF Mission to the Republic of Guinea

_IMF News, October 12, 2007_

## Source details

**Canonical URL:** [Press Release: Statement by IMF Mission to the Republic of Guinea](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr07227)

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## Bibliographic details
- Published: October 12, 2007

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### 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.*

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## References

- [Guinea and the IMF](http://www.imf.org/external/country/GIN/index.htm)
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- [PRESS CENTER](http://presscenter.imf.org/)
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_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr07227_