## IMF Reaches Staff-level Agreement with Guinea

_IMF News, October 17, 2017_

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**Canonical URL:** [IMF Reaches Staff-level Agreement with Guinea](https://www.imf.org/en/news/articles/2017/10/17/pr17404-imf-reaches-staff-level-agreement-with-guinea)

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## Bibliographic details
- Published: October 17, 2017

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### Overview
- IMF staff and Guinean authorities reached a staff-level agreement on a program of economic policies and reforms that could be supported by an Extended Credit Facility (ECF) arrangement.
- The program is intended to support Guinea’s 2016–20 National Social and Economic Development Plan.
- Subject to IMF management approval, the staff-level agreement is expected to be submitted to the IMF Executive Board for its consideration in November 2017.
- Discussions took place in Conakry from July 31-August 15, 2017 and during the 2017 Annual Meetings in Washington in October 2017.

### Program objectives and scope
- Support Guinea’s 2016–20 National Social and Economic Development Plan to:
  - foster higher and more broad-based growth,
  - diversify the economy,
  - reduce poverty,
  - preserve macroeconomic stability and debt sustainability.
- The envisaged ECF arrangement would be for three-year duration.

### Macroeconomic resilience and external buffers
- Further accumulating foreign exchange reserves to reinforce Guinea’s external buffers against shocks.
- Maintain a prudent monetary policy to:
  - preserve moderate inflation,
  - ensure liquidity in the banking sector to support healthy private sector credit growth.

### Fiscal policy and public investment
- Achieve a basic fiscal surplus to:
  - limit budgetary financing needs,
  - contribute to keeping inflation at a moderate level,
  - increase banks’ provision of credit to the private sector,
  - preserve medium-term debt sustainability.
- Mobilize additional tax revenues and gradually reduce untargeted electricity subsidies to create fiscal space for:
  - increasing public investments in infrastructure,
  - strengthening social safety nets to reduce poverty and foster inclusion.
- Strengthen public finance and investment management to support the scaling-up of public investments and increase the efficiency and returns of public investments.

### Debt management and borrowing strategy
- A prudent borrowing strategy that aims at maximizing the concessionality of external loans will be key to preserve medium-term debt sustainability.
- Strengthening debt capacity management will be important to implement this strategy.

### Structural reforms and private sector development
- Bolster social safety nets to reduce poverty.
- Foster the development of the private sector by:
  - improving the business climate,
  - strengthening governance,
  - advancing financial inclusion.
- These measures are intended to generate more inclusive and broad-based growth for Guinea.

### Timetable and procedural notes
- Staff-level agreement reached following IMF staff mission discussions in Conakry (July 31-August 15, 2017) and meetings in October 2017.
- Expected submission of the staff report to the IMF Executive Board in November 2017, subject to IMF management approval.

*Source: IMF Press Release No. 17/404, October 17, 2017.*

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## References

- [Guinea and the IMF](http://www.imf.org/external/country/GIN/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [www.imf.org/en/News/Articles/2017/08/17/pr17329](http://www.imf.org/en/News/Articles/2017/08/17/pr17329)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2017/10/17/pr17404-imf-reaches-staff-level-agreement-with-guinea_