IMF grants loan to Guinea-Bissau

26 September 2014

The International Monetary Fund (IMF) will provide a loan of 4.1 million euros to Guinea-Bissau to meet some of the country’s urgent basic needs, the head of an IMF mission, Felix Fischer said.

The agreement was reached during a visit byan IMF delegation to Guinea-Bissau which began on 15 September and ended Thursday with praise for the measures that are being implemented by the new government elected in April and sworn in in July.

The loan is expected to be approved by the IMF Executive Board in November and paid in one tranche at the same time through a mechanism for countries with low tax revenues, but with urgent needs.

The payment of salaries, provision of electricity and debt servicing are among Guinea-Bissau’s budget priorities.

The IMF plans to return to Guinea-Bissau in March or April 2015 to discuss a three-year funding programme, according to Portuguese news agency Lusa. (macauhub/GW)