The IMF to provide a loan for Guinea-Bissau, for what?
2022.11.21 12:03
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The IMF to provide a loan for Guinea-Bissau, for what?
Budrigannews.com – The International Monetary Fund stated that it had reached a staff-level agreement with Guinea-Bissau for an extended credit facility worth $36.3 million for a period of three years.
The purpose of this agreement was to create fiscal space in order to secure debt sustainability and support an inclusive economic recovery.
The agreement for the loan program, which was announced at the conclusion of an IMF mission to Bissau from November 15 to 21, needs to be approved by the Fund’s executive board.
In a statement released following the mission, Jose Gijon, the head of the IMF team, stated that “spreads from the war in Ukraine are stalling the recovery” and that “Guinea Bissau’s economy is gradually recovering from the negative effects of the COVID-19 pandemic.”
He said that in 2022, the economy should grow by about 3.5%.
Due to the global rise in food and oil prices, it is anticipated that average inflation will exceed 7%.
Authorities will place an emphasis on strengthening fiscal management and enhancing public governance as part of the new program supported by the Fund. These priorities will include securing debt sustainability and creating fiscal space in the medium term.
This year’s overall fiscal deficit is anticipated to be 5% of GDP.Over 80% of GDP remains the level of public debt.
