The International Monetary Fund (IMF) has disbursed US$4.3 million to Guinea-Bissau under the Extended Credit Facility (ECF) to restore macroeconomic stability, promote efficiency of services and boost growth in the West African country, according to a statement released on Monday in Washington.
The IMF adds in the statement that following this new payment, the amount granted to Guinea Bissau under the Extended Credit Facility totals US$19.8 million and recalls that the three-year programme totalling US$24 million was approved by the Fund’s management on 10 July 2015.
The IMF also concluded Article IV consultations for 2017, with Tao Zhang, who led the mission to Guinea-Bissau, quoted in the resulting statement as saying that the implementation of economic policies in the country had been satisfactory and had respected the objectives of the programme financed by the Fund.
“Economic growth has remained strong, bolstered by higher commodity prices, while tax revenue has improved, which has made it possible to maintain economic stability,” Tao Zhang said.
The statement noted, however, that strengthening of the banking system is “critical” for the stability of the financial sector and that despite improvement tax revenues are still low.
The IMF also recommends that borrowing for projects considered to be a priority should be limited and, whenever possible, the loans should have favourable terms, rather than making use of commercial loans. (macauhub)