IMF Staff Completes Review Discussions with Guinea-Bissau

IMF News, October 8, 2016

Source details

Press Release No. 16/453 — October 8, 2016.
End-of-Mission press release conveying IMF staff preliminary findings; views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
Discussions began in Guinea-Bissau during September 13-26 and continued in Washington DC during the IMF’s 2016 Annual Meetings.
A team led by Felix Fischer engaged with Guinea-Bissau authorities on policies needed to complete the first and second reviews of the IMF-supported program under the Extended Credit Facility (ECF).

Staff-level agreement reached on economic policies needed for completion of the first and second reviews of the ECF.
Program aims:
- Consolidate the fiscal position through better expenditure management and enhanced revenue mobilization.
- Deepen institutional reforms.
- Develop the private sector to support growth and job creation.
Authorities reiterated commitment to bring the ECF-supported program back on track.

Agreed fiscal efforts to close the outstanding fiscal gap in 2016, comprising mainly:
- Proceeds from the sale of timber seized by the government.
- Resuming normal operations at customs.
- Broadening the tax base.
- Improving tax administration.
- Rigorous spending controls.
Authorities committed to:
- Present the 2016 budget to Parliament.
- Prepare the 2017 budget.
- Continue the unwinding of the bank bailout.
Discussions focused on key fiscal actions to close the fiscal gap in 2016 and structural measures to underpin revenue mobilization and enhance expenditure management.

The staff-level agreement is subject to approval by IMF Management and the IMF Executive Board.
IMF Executive Board slated to consider the first and second ECF reviews in early December 2016.
Upon approval, drawings of SDR 5.112 million (about US$ 7.1 million) would become available to Guinea-Bissau.
Background on the ECF for Guinea-Bissau:
- The ECF is a lending arrangement for sustained program engagement over the medium to long-term in case of protracted balance of payments problems.
- The arrangement for Guinea-Bissau was approved on July 10, 2015 in an amount equivalent to SDR 17.04 million (about US$23.9 million or 60 percent of quota) (see Press Release No.15/331).

The Guinea-Bissau delegation was led by Finance Minister Henrique Horta Dos Santos.
Delegation members included:
- Central Bank of West African States (BCEAO) National Director João Fadia.
- State Secretary of Budget Jose Vieira.
- Staff from the Ministry of Finance.

IMF Staff Completes Review Discussions with Guinea-Bissau — Press Release No. 16/453, October 8, 2016