The Executive Board of the International Monetary Fund (IMF) has completed the third review of Guinea-Bissau’s economic performance under the program supported by an Extended Credit Facility (ECF) arrangement and enables the release of US$4.1 million.
The Executive Board says Guinea-Bissau’s economic activity has remained robust and there has been good progress in improving public financial management.
The completion of the review which was carried on July 6, 2017, enables the release of US$4.1 million, bringing total disbursements under the arrangement to US$15.2 million.
The Executive Board’s decision was taken on a lapse-of-time basis.
The ECF-supported program aims to restore macroeconomic stability and improve efficiency in public service delivery to foster inclusive growth while protecting social spending.
The Executive Board says the program implementation for the third review has been satisfactory, adding that four of five performance criteria, three of four indicative targets, and six of eight structural benchmarks were met.
“Corrective measures have been taken in the remaining areas, with several steps already completed.”
The Executive Board, however, notes that maintaining the positive economic momentum will require further strengthening of public financial management to reduce the fiscal deficit and support macroeconomic stability.
“Firm action is also needed to address weaknesses in the banking system, and fundamental reform of the power sector is necessary to stem losses and improve supply. To boost investment and improve public service delivery, it will further be important to strengthen anti-corruption efforts, improve statistics and enhance transparency, and promote healthy competition in the private sector,” the Executive Board states.