## Guinea-Bissau: Use of Fund Resources — Request for Third Purchase Under Emergency Post-Conflict Assistance

_IMF Staff Country Reports, July 31, 2009_

## Source details

**Canonical URL:** [Guinea-Bissau: Use of Fund Resources — Request for Third Purchase Under Emergency Post-Conflict Assistance](https://www.imf.org/en/publications/cr/issues/2016/12/31/guinea-bissau-use-of-fund-resources-request-for-third-purchase-under-emergency-post-conflict-23153)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/guinea-bissau-use-of-fund-resources-request-for-third-purchase-under-emergency-post-conflict-23153/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/guinea-bissau-use-of-fund-resources-request-for-third-purchase-under-emergency-post-conflict-23153/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/guinea-bissau-use-of-fund-resources-request-for-third-purchase-under-emergency-post-conflict-23153/bundle-manifest.json)

## Bibliographic details
- Published: July 31, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451815870.002

---

### Macroeconomic outlook and balance of payments
- Global economic developments, especially lower export demand and prices, are expected to slow growth significantly and put pressure on the balance of payments.
- The authorities are requesting a third Emergency Post-Conflict Assistance (EPCA) purchase of 12.5 percent of quota to support their 2009 economic framework.
- A third EPCA purchase would give the authorities time to demonstrate a track record of policy performance that could pave the way for a new Poverty Reduction Growth Facility arrangement.

### Fiscal framework and public finances
- The 2009 fiscal framework aims to stabilize public finances and avoid new domestic arrears.
- Priority policy objective: stabilization of public finances to prevent accumulation of domestic arrears.

### Program design and policy implications
- Emergency assistance instrument: Emergency Post-Conflict Assistance (EPCA).
- Requested operation: third EPCA purchase of 12.5 percent of quota.
- Intended outcome: provide short-term balance of payments support and policy space to establish a track record sufficient for transitioning to a longer-term Poverty Reduction Growth Facility arrangement.

### Key findings and policy recommendations
- Findings:
  - Lower export demand and prices are central risks that will slow growth significantly.
  - Balance of payments pressures are expected as a result of adverse external developments.
- Policy recommendations:
  - Implement the 2009 fiscal framework to stabilize public finances.
  - Avoid new domestic arrears to preserve fiscal credibility.
  - Use the third EPCA purchase to secure time for demonstrating consistent policy performance toward a PRGF arrangement.

*Source: Guinea-Bissau: Use of Fund Resources: Request for Third Purchase Under Emergency Post-Conflict Assistance: Staff Report; Staff Supplement; Press Release; and Statement by the Executive Director for Guinea-Bissau, July 31, 2009.*

---

## Content in this bundle

- **_cr09236**
  - [_cr09236 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr09236.pdf.md){rel="alternate" type="text/markdown"}
  - [_cr09236 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr09236.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/guinea-bissau-use-of-fund-resources-request-for-third-purchase-under-emergency-post-conflict-23153_