International Monetary Fund completes Guinea-Bissau ECF eleventh review and clears SDR 1.18 million disbursement

The International Monetary Fund Executive Board completed the eleventh review of Guinea-Bissau’s Extended Credit Facility arrangement, enabling a disbursement of SDR 1.18 million, about USD 1.7 million, for the country’s balance-of-payments and fiscal financing needs. Total disbursements under the arrangement now amount to SDR 38.59 million, about USD 54.8 million. In the same decision, the Board approved modifications to the quantitative performance criteria on total domestic tax revenue and the domestic primary balance, and completed the financing assurances review. Program performance through the review was strong. All end-March 2026 quantitative performance criteria, both indicative targets, and all continuous structural benchmarks and performance criteria were met. The IMF said growth in 2025 was estimated at about 5.8 percent, supported by agricultural production, especially cashew exports, and private investment, but is expected to moderate in 2026 as external conditions become more difficult, including elevated global fuel prices linked to the war in the Middle East and risks to the cashew campaign. It also pointed to downside risks from adverse weather, terms-of-trade shocks and tighter financing conditions. The IMF said continued fiscal discipline remains necessary to contain debt vulnerabilities, with emphasis on restraining current expenditure, closely monitoring priority capital spending and sustaining domestic revenue mobilization. It also highlighted ongoing structural reforms, including the authorities’ disengagement from an undercapitalized bank after a new private investor injected capital, and progress in diversifying the energy supply mix.