Guinea: Staff Report for the 1999 Article IV Consultation and Request for the Third Annual Arrangement Under the Enhanced Structural Adjustment Facility

IMF Staff Country Reports, March 8, 2000

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Canonical URL: Guinea: Staff Report for the 1999 Article IV Consultation and Request for the Third Annual Arrangement Under the Enhanced Structural Adjustment Facility

The Guinean government faced economic management problems.
The government revised its budget and adopted fiscal and monetary targets aimed at stopping monetary expansion by scaling back and controlling expenditure to meet revenue.
Repayment of government debt to the central bank will increase private sector credit and aid the rebuilding of foreign exchange reserves.
Exchange rate policy must be more clearly defined.
Governance issues remain an important concern in Guinea.
The enhanced Initiative for Highly Indebted Poor Countries (HIPC) will provide important debt relief to Guinea.

Fiscal and monetary targeting:
- Adopted fiscal and monetary targets aimed at stopping monetary expansion.
- Emphasis on scaling back and controlling expenditure to align with revenue.
Debt and central bank operations:
- Repayment of government debt to the central bank is identified as a priority to free resources for private sector credit and to rebuild foreign exchange reserves.
Exchange rate policy:
- Exchange rate policy needs clearer definition and articulation.
Governance:
- Addressing governance issues is highlighted as an ongoing and important concern.
External debt relief:
- Participation in the enhanced HIPC Initiative is expected to provide important debt relief.

Subject: Banking, Commercial banks, Currency markets, Expenditure, Financial institutions, Financial markets, Foreign exchange, Public debt
Keywords: balance of payments, central bank, Commercial banks, CR, Currency markets, debt service, exchange rate, foreign exchange, GDP, Global, Guinean authorities, ISCR, private sector, Sub-Saharan Africa, West Africa