## IMF Staff Completes Review Discussions with Guinea-Bissau

_IMF News, October 8, 2016_

## Source details

**Canonical URL:** [IMF Staff Completes Review Discussions with Guinea-Bissau](https://www.imf.org/en/news/articles/2016/10/08/pr16453-guinea-bissau-imf-staff-completes-review-discussions)

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## Bibliographic details
- Published: October 8, 2016

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### Mission and context
- 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).

### Key policy agreements and program objectives
- 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.

### Fiscal measures and structural actions agreed
- 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.

### Program financing, reviews, and timing
- 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).

### Delegation
- 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*

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## References

- [Guinea-Bissau and the IMF](http://www.imf.org/external/country/GNB/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [staff visit to Bissau](http://www.imf.org/en/News/Articles/2016/09/26/PR16426-Guinea-Bissau-IMF-Staff-Completes-Visit)
- [ECF](http://www.imf.org/external/np/exr/facts/ecf.htm)
- [Press Release No.15/331](http://www.imf.org/external/np/sec/pr/2015/pr15331.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2016/10/08/pr16453-guinea-bissau-imf-staff-completes-review-discussions_