Washington, July 1, 2025 (Lusa) - The International Monetary Fund (IMF) announced on Tuesday that it has completed the eighth review of the financial adjustment programme in Guinea-Bissau, allowing for the immediate disbursement of US$6.5 million, and the annual consultation on the country's economy.
"The Executive Board today concluded the Article IV consultation for 2025 and completed the eighth review under the Extended Credit Facility (ECF) for Guinea-Bissau," reads the statement sent to Lusa, adding that "the conclusion of the review allows for the immediate disbursement of 4.73 million Special Drawing Rights [about US$6.5 million or €5.5 million], bringing the total disbursements under the agreement to 35.04 million SDRs (about US$48.1 million or more than €40 million).
In its analysis of the programme under way in Guinea-Bissau, the IMF states that "performance has been mixed", noting that "seven of the nine quantitative performance criteria and three of the four structural benchmarks for end-December 2024 have been met".
In the section of the document on macroeconomic forecasts, the Fund estimates growth of 5.1% in this Portuguese-speaking African country, with inflation of around 2%.
"The authorities are committed to achieving a budget deficit of 3.4% of GDP in 2025, to put public debt on a firm downward path," the IMF technicians add, concluding that "the economic outlook is positive but remains subject to significant internal and external risks."
Although the direct impact of recent global trade tensions on Guinea-Bissau "is limited, the economy remains subject to significant risks of deterioration, in a challenging socio-political climate in an election year and with capacity constraints," IMF technicians warn.
The initial agreement with Bissau was approved by the IMF Executive Board on 30 January 2023 for a total amount of approximately US$37.8 million (more than €33 million) and, on 29 November 2023, the IMF Executive Board authorised a 40% increase in access to the quota.
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