Guinea-Bissau: Sixth Review Under the Extended Credit Facility, Request for a Waiver of Nonobservance of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Guinea-Bissau

Table of Contents

• PR24312 - Guinea Bissau - Sixth Review under the ECF August 2024 2
• IMF Executive Board Completes the Sixth Review under the Extended Credit Facility Arrangement for Guinea-Bissau and Approves US$7.3 Million Disbursement 2
• FOR IMMEDIATE RELEASE 2
• Guinea-Bissau - 2024 - Sixth Review Under the ECF - Staff Report to publication 4
• Context 7
• Recent Economic Developments 7
• Outlook and Risks 8
• Program Performance 9
• Policy Discussions 9
• A. Fiscal Policy 10
• B. Financing and Debt 12
• C. Financial Sector Policy 13
• D. Governance 14
• Program Modalities and Other Issues 14
• Staff Appraisal 15
• A. Introduction 43
• B. Economic Development and Outlook 43
• C. Program Performance 43
• D. Fiscal Policy and Reforms 44
• Supporting Fiscal Consolidation 44
• Mitigating Debt Vulnerabilities 46
• Improving Public Financial Management 48
• Mitigating Fiscal Risks 48
• E. Governance Reforms 49
• F. Financial Sector Reforms 51
• G. Statistics Reforms 51
• H. Program Monitoring 52
• A. Total Domestic Tax Revenue 59
• B. Wage Bill 59
• C. New Non-Concessional External Debt Contracted or Guaranteed by the Central Government 59
• D. New Concessional External Debt Contracted or Guaranteed by the Central Government 60
• E. Ceiling on Disbursement of External Project Loans 61
• F. New External Payment Arrears of the Central Government 61
• G. New Domestic Arrears of Central Government 61
• H. Social and Priority Spending 62
• I. Domestic Primary Balance (Commitment Basis) 62
• J. Non-Regularized Expenditure (DNTs) 62
• K. Floor on Spending for targeted projects and activities 62
• L. Reconciliation Reports of Fishing Revenue 63
• M. Design of Ring Line Project 63
• Buff on Guinea Bissau - RL - aug 23, 2024 65
• Introduction 65
• Recent Economic Developments and Outlook 65
• Program Performance 66
• Significant progress has been made under the IMF-supported program, with the authorities meeting seven out of nine quantitative performance criteria (QPCs) for April 2024. The strong performance underscores Guinea-Bissau’s determined commitment to the... 66
• The authorities have completed most structural benchmarks (SBs) since the last review to ensure slippages do not reoccur. The two missed continuous SBs relating to debt service payments and commitment of expenditures by the Technical Committee of Arbi... 66
• Policies and Reforms for 2024 and the Medium-Term 67
• Conclusion 68