The International Monetary Fund’s Executive Board completed the ninth and tenth reviews under Guinea-Bissau’s Extended Credit Facility (ECF) arrangement, allowing an immediate disbursement of SDR 2.37 million (about USD 3.2 million) and bringing total disbursements under the programme to SDR 37.41 million (about USD 50.8 million). The Board also approved the authorities’ request to extend the arrangement through December 29, 2026 and to rephase access to support implementation of the 2026 budget. Programme implementation weakened after the Eighth Review in June 2025, with quantitative performance criteria and structural benchmarks missed or delayed amid policy slippages and political disruptions following a change in government in November 2025. In completing the reviews, the Board granted waivers for the nonobservance of quantitative performance criteria, approved modifications to performance criteria and indicative targets, and completed the financing assurances review. The IMF reported 2025 growth of 5.5% and average inflation of 0.9%, alongside a current account deficit estimated at 6.2% of GDP and public debt estimated at 75.3% of GDP; it also highlighted fiscal consolidation plans in the 2026 budget, ongoing recapitalisation of an undercapitalised bank following divestment, and continued work on energy sector and governance reforms. The programme now runs to December 29, 2026 with access rephased, and the authorities expect an additional capital injection shortly as part of the bank restructuring aimed at meeting regulatory capital requirements.

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