## IMF Executive Board Completes Second Review of the Extended Credit Facility with Guinea

_IMF News, December 21, 2018_

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**Canonical URL:** [IMF Executive Board Completes Second Review of the Extended Credit Facility with Guinea](https://www.imf.org/en/news/articles/2018/12/21/pr18497-guinea-imf-exec-board-compl-2nd-rev-ext-credit-facil)

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## Bibliographic details
- Published: December 21, 2018

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### Review outcome and disbursement
- Executive Board completed the second review of Guinea’s economic performance under the Extended Credit Facility (ECF) on December 21, 2018.
- Completion of the review enables the immediate disbursement of SDR 17.213 million (about US$23.9 million).
- Total disbursements under the arrangement after this review: SDR 51.636 million (about US$71.6 million).
- The Board approved the authorities’ request for modification and a waiver of non-observance of a performance criterion.

### Program background and objectives
- Guinea’s three-year ECF arrangement was approved by the Executive Board on December 11, 2017 (Press Release No. 17/484) for SDR 120.488 million (about US$167.2 million at the time of the arrangement’s approval, or 56.25 percent of Guinea’s quota).
- The ECF arrangement aims at:
  - strengthening resilience,
  - scaling-up public investment in infrastructure while preserving stability,
  - strengthening social safety nets,
  - promoting private sector development.

### IMF assessment and macroeconomic outlook (statement by Mr. Tao Zhang, Acting Chair and Deputy Managing Director)
- Overall assessment:
  - “Guinea is implementing a program of macroeconomic policies and reforms to achieve high and broad-based growth and reduce poverty while preserving macroeconomic stability.”
  - “Performance under the ECF-supported program against end-June targets was satisfactory and program-supported reforms advanced well.”
  - “The strong growth momentum continues, and the medium-term outlook is favorable.”
- Fiscal policy and public investment:
  - In view of revenue shortfalls, the authorities have undertaken additional measures to achieve the end-2018 fiscal target.
  - “Achieving a basic fiscal surplus will support preserving macroeconomic stability.”
  - “Mobilizing additional tax revenues will allow scaling-up growth-supporting infrastructure investment.”
  - The authorities aim to reduce untargeted electricity subsidies and have an automatic adjustment mechanism for petroleum prices.
  - “Attention to the social impact of these planned reforms will be important, including by strengthening social safety nets.”
- Debt management:
  - “Prudent debt management will be crucial to maintaining debt sustainability.”
  - “Limiting non-concessional borrowing and enhancing public finance and investment management will help preserve debt sustainability and support efficiency and transparency.”
- External sector and reserves:
  - “A more active strategy to accumulate reserves will help build external buffers and strengthen Guinea’s resilience to shocks.”
  - “Increasing competition in the foreign exchange market and moving to a rule-based intervention strategy will also support greater exchange rate flexibility.”
- Monetary policy and financial sector:
  - “Monetary policy will remain prudent to preserve moderate inflation.”
  - “The authorities will continue to limit government budgetary borrowing from the central bank and move toward a more active liquidity management.”
  - “Strengthening banking supervision and the regulatory framework will support financial sector stability.”
- Structural reforms and governance:
  - “The authorities are committed to advancing growth-supporting structural reforms.”
  - “Strengthening the anti-corruption framework and the business climate will enhance governance and support private sector development.”

### Key statistics
- Immediate disbursement approved: SDR 17.213 million (about US$23.9 million).
- Total disbursements under the arrangement after review: SDR 51.636 million (about US$71.6 million).
- Original ECF approval: SDR 120.488 million (about US$167.2 million at approval), or 56.25 percent of Guinea’s quota.
- ECF arrangement approval date: December 11, 2017.
- Review completion date: December 21, 2018.
- Press Release number for this review: Press Release No. 18/497.

*Press Release No. 18/497 (December 21, 2018), IMF Communications Department.*

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## References

- [Tao Zhang](https://www.imf.org/en/About/senior-officials/Bios/tao-zhang)
- [Guinea and the IMF](http://www.imf.org/external/country/GIN/index.htm)
- [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [No. 17/484](https://www.imf.org/en/News/Articles/2017/12/12/pr17484-imf-executive-board-approves-us1701-million-under-ecf-for-guinea)
- [ECF](https://www.imf.org/external/np/exr/facts/ecf.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/12/21/pr18497-guinea-imf-exec-board-compl-2nd-rev-ext-credit-facil_