The International Monetary Fund (IMF) approved a loan of US$5.4 million to Guinea-Bissau for the government to make urgent payments, the IMF said in a statement issued Monday in Washington.
The IMF stressed in a statement that the new government of Guinea-Bissau “inherited a difficult situation” in terms of cash “after two years of economic disruption” characterised by a drop in state revenues, delayed salaries of civil servants, a 2 percent drop in Gross Domestic Product (GDP) and a “dramatic increase” in levels of poverty.
Nevertheless, the IMF welcomed the measures put in place by the new government that in a short time paid several months of salary arrears and secured the approval of the State Budget for 2014 in parliament, according to the assistant secretary general of the IMF, Min Zhu.
“The newly elected government of Guinea-Bissau is taking action to tackle the economic and social challenges facing the country, after two years of economic crisis have worsened fiscal imbalances,” noted Zhu.
This loan is equivalent to one quarter of the Guinea-Bissau’s quota at the International Monetary Fund. (macauhb/GW)