Guinea-Bissau: Second Review Under the Staff Monitored Program-Press Release; and Staff Report

IMF Staff Country Reports, February 14, 2022

Source details

Canonical URL: Guinea-Bissau: Second Review Under the Staff Monitored Program-Press Release; and Staff Report

After two years of protracted political turmoil and delays in reforms, the authorities put in place in 2021 an ambitious fiscal consolidation program to ensure debt sustainability while creating fiscal space to address vast developmental needs.
In late July, Fund Management approved a 9-month Staff Monitored Program (SMP) to support the government’s reform program aimed at:
- stabilizing the economy,
- strengthening governance, and
- building a soundtrack-record of policy implementation towards an Extended Credit Facility (ECF) arrangement.
The first review of the SMP was concluded satisfactorily in October.

A Rapid Credit Facility (RCF) disbursement of SDR 14.2 million (50 percent of quota) was approved in January to provide urgent financing to support critical spending in health and catalyze additional donor resources.
An SDR 27.2 million allocation (96 percent of quota) was noted as contributing alongside the RCF disbursement and SMP reforms to address fragility.

The RCF disbursement, the SDR 27.2 million allocation (96 percent of quota) and reforms underpinned by the SMP are contributing to:
- address fragility including the adverse impact of the pandemic,
- improve government spending transparency, and
- mitigate debt vulnerabilities.
These measures aim to create conditions that would help restore donor confidence and catalyze much-needed concessional financing.

Guinea-Bissau: Second Review Under the Staff Monitored Program-Press Release; and Staff Report