BISSAU, March 21– The International Monetary Fund (IMF) has approved an immediate disbursement of about 3.2 million U.S. dollars to Guinea-Bissau after completing the ninth and 10th reviews under the country’s Extended Credit Facility (ECF) arrangement, the IMF said.
The latest disbursement, equivalent to 2.37 million Special Drawing Rights (SDRs), brings total disbursements under the arrangement to 37.41 million SDRs, or about 50.8 million dollars, according to an IMF press release issued on Friday.
The IMF Executive Board also approved the authorities’ request to extend the ECF-supported program through Dec. 29, together with a rephasing of access, in a move aimed at anchoring economic policies and supporting implementation of the 2026 budget.
The agency said Guinea-Bissau’s economy remained resilient in 2025, with growth estimated at 5.5 percent, supported by strong cashew production and favorable terms-of-trade developments, while average inflation eased to 0.9 percent.
The current account deficit was estimated to have narrowed to 6.2 percent of gross domestic product (GDP).
At the same time, the IMF noted that program performance since the eighth review in June 2025 had been weaker than expected.
It said three of 10 quantitative performance criteria for end-June 2025 and five of 10 for end-December 2025 were missed, while implementation of structural benchmarks was delayed in several areas.
Despite the setbacks, the IMF said the transitional government had shown commitment to the reform agenda.
The Executive Board granted waivers for the non-observance of some performance criteria, approved modifications of performance criteria and indicative targets, and completed the financing assurances review.
Guinea-Bissau’s public debt declined to an estimated 75.3 percent of GDP in 2025, the IMF said, stressing that maintaining a firm downward debt trajectory would require sustained fiscal consolidation and prudent borrowing policies. (Namibia Daily News/Xinhua)
