{
  "title": "IMF Survey: IMF, World Bank Back $1.2 Billion Debt Relief for Guinea-Bissau",
  "publication": "IMF News, December 17, 2010",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/28/04/53/socar121710a",
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  "summary": "The IMF and the World Bank decide to support $1.2 billion in debt relief for Guinea-Bissau. The move will cut the West African country’s external debt by 87 percent and help normalize relations with external creditors, while sending a positive signal to donors and potential investors.",
  "authors": [
    "Paulo Drummond IMF African Department December"
  ],
  "publishDate": "2010-12-17",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Publication date: December 17, 2010\n- The IMF and the World Bank decided, on December 13 and 16, respectively, to support $1.2 billion in debt relief for Guinea-Bissau.\n- The move will cut the country’s external debt by 87 percent and help normalize relations with external creditors, while sending a positive signal to donors and potential investors."
    },
    {
      "heading": "Debt relief for Africa — details and amounts",
      "content": "- Total debt service savings generated: $1.2 billion.\n- Composition of debt relief:\n  - $703 million in HIPC debt relief\n  - $107.9 million in additional debt relief from the Paris Club group of creditors\n  - $230.3 million in debt relief under topping-up assistance\n  - $139.2 million in debt relief under the MDRI\n- Contributions from multilateral institutions:\n  - Debt relief from the IMF: $15 million\n  - Debt relief from the World Bank: $347.2 million\n- Timing and impact:\n  - Present value of Guinea-Bissau’s external debt at end-2009 will be reduced by 87 percent.\n  - Reached the final stage, or completion point, of the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative; also qualifies for debt relief under the Multilateral Debt Relief Initiative (MDRI)."
    },
    {
      "heading": "Economic and policy context — road to HIPC completion",
      "content": "- History and program support:\n  - Reached the interim HIPC decision point in 2000.\n  - IMF staff-monitored programs in 2006 and 2007.\n  - Emergency Post-Conflict Assistance (EPCA) in 2008 and 2009.\n  - Approval, in May 2010, of a three-year Extended Credit Facility arrangement with the IMF.\n- Macroeconomic performance and reforms:\n  - Solid performance under the 2009 EPCA-supported economic program stabilized the economy.\n  - Under the Extended Credit Facility arrangement, the government maintained sound macroeconomic policies and accelerated reforms.\n  - GDP growth has been resilient, inflation is low, fiscal revenues have exceeded the program targets, and spending has been kept under control.\n  - Structural measures taken: strengthen budget planning and execution, increase revenue collection, and improve the business environment."
    },
    {
      "heading": "Key accomplishments tied to HIPC completion point",
      "content": "- Achievements linked to poverty reduction, macroeconomic stability, social sectors, and demobilization:\n  - Implementing a poverty reduction strategy prepared in a participatory process involving all segments of society\n  - Overhauling of the public procurement system in line with West African Economic Monetary Union (WAEMU) guidelines\n  - Bringing the public expenditure management system in line with WAEMU standards, and resuming quarterly budget execution reports\n  - Introducing free primary education in public schools, and raising enrollment rates\n  - Providing vaccination to more than 90 percent of children\n  - Raising awareness of HIV/AIDS: about 91 percent of women aged 15–49 have heard of HIV/AIDS, and 64 percent know that it can be transmitted from mother to child"
    },
    {
      "heading": "Next steps and policy recommendations",
      "content": "- Short- and medium-term financing guidance:\n  - Guinea-Bissau should continue to rely on grants and nonconcessional borrowing to meet its financing needs for the foreseeable future.\n- Conditions for lasting debt sustainability and development progress:\n  - Political stability\n  - Further progress on economic reforms, including security sector reform\n  - Diversifying the export base\n  - Mobilizing more domestic revenue\n- Objective:\n  - Secure debt sustainability and sustain growth and poverty reduction, including progress toward the antipoverty Millennium Development Goals.\n\nSource: IMF Survey: IMF, World Bank Back $1.2 Billion Debt Relief for Guinea-Bissau (December 17, 2010).\n\n---\n\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- IMF Country Focus\n- Press release\n- Guinea-Bissau and the IMF\n- Africa set for growth\n- Boost from intraAfrica trade\n- Recovery under way in Africa\n- Private sector gains in Africa\n- Africa after global crisis\n- Africa’s growth set to rebound\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/28/04/53/socar121710a"
    }
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    "Authors: Paulo Drummond IMF African Department December",
    "Published: December 17, 2010",
    "Publication date: December 17, 2010",
    "The IMF and the World Bank decided, on December 13 and 16, respectively, to support $1.2 billion in debt relief for Guinea-Bissau.",
    "The move will cut the country’s external debt by 87 percent and help normalize relations with external creditors, while sending a positive signal to donors and potential investors.",
    "Total debt service savings generated: $1.2 billion.",
    "Composition of debt relief:",
    "Contributions from multilateral institutions:",
    "Timing and impact:",
    "History and program support:",
    "Macroeconomic performance and reforms:",
    "Achievements linked to poverty reduction, macroeconomic stability, social sectors, and demobilization:",
    "Short- and medium-term financing guidance:",
    "Conditions for lasting debt sustainability and development progress:",
    "Objective:",
    "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[IMF Country Focus](https://www.imf.org/en/news/country-focus)",
    "[Press release](https://www.imf.org/external/np/sec/pr/2010/pr10498.htm)",
    "[Guinea-Bissau and the IMF](https://www.imf.org/external/country/gnb/index.htm)",
    "[Africa set for growth](https://www.imf.org/external/pubs/ft/survey/so/2010/CAR102510A.htm)",
    "[Boost from intraAfrica trade](https://www.imf.org/external/pubs/ft/survey/so/2010/CAR100910A.htm)",
    "[Recovery under way in Africa](https://www.imf.org/external/pubs/ft/survey/so/2010/CAR100710A.htm)",
    "[Private sector gains in Africa](https://www.imf.org/external/pubs/ft/survey/so/2010/int030410a.htm)",
    "[Africa after global crisis](https://www.imf.org/external/pubs/ft/survey/so/2010/new030410a.htm)",
    "[Africa’s growth set to rebound](https://www.imf.org/external/pubs/ft/survey/so/2010/CAR042310A.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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