- The IMF Executive Board today completed the Ninth and Tenth Reviews under the Extended Credit Facility (ECF) arrangement for Guinea-Bissau. The completion of the reviews allows for an immediate disbursement of SDR 2.37 million (about US$3.2 million), bringing total disbursements under the arrangement to SDR 37.41 million (about US$50.8 million).
- Program implementation experienced delays in some areas following the change in government in November 2025. Despite this setback, the transitional government has expressed a strong commitment to the objectives of the ECF supported program.
- The IMF Executive Board approved the authorities’ request for the program extension through December 29, 2026, with a rephasing of access to help anchor economic policies and support implementation of the 2026 budget.
Washington, D.C.: The Executive Board of the International Monetary Fund (IMF) today completed the ninth and tenth reviews under the Extended Credit Facility (ECF) arrangement for Guinea-Bissau. The three-year arrangement, approved on January 30, 2023, aims to secure debt sustainability, improve governance, and reduce corruption, while creating fiscal space to foster inclusive growth. The Executive Board granted an augmentation of access on November 29, 2023. The completion of the reviews enables the disbursement of SDR 2.37 million (about US$3.2 million) to help meet the country’s balance-of-payments and fiscal financing needs. This brings total disbursements under the arrangement to SDR 37.41 million (about US$50.8 million).
Program performance since the Eighth Review in June 2025 has been weaker than expected. Three out ten end-June 2025 Quantitative Performance Criteria (QPCs) and five out of ten end‑December 2025 QPCs were missed. Of the 15 Structural Benchmarks set for June–December 2025, five were met, while ten were implemented with delays, and all three Continuous Structural Benchmarks were missed. In completing the reviews, the Executive Board granted waivers for the nonobservance of Quantitative Performance Criteria, approved the authorities’ requests for modifications of Performance Criteria and Indicative Targets, and completed the financing assurances review. The Executive Board also approved the authorities’ request for a program extension through December 29, 2026, along with a rephasing of access.
Economic growth in 2025 is estimated at 5.5 percent, driven by strong cashew production and favorable terms‑of‑trade developments, while average inflation eased to 0.9 percent. The current account deficit is estimated to have narrowed to 6.2 percent of GDP in 2025. The fiscal deficit was larger than expected due to weaker revenue performance, higher interest payments, and lower‑than‑anticipated budget support. Although public debt declined to an estimated 75.3 percent of GDP, maintaining a firm downward debt trajectory over the medium term will require sustained fiscal consolidation and prudent borrowing policies.
At the conclusion of the Executive Board’s discussion, Mr. Li, Deputy Managing Director and Chair, made the following statement:
“The economy of Guinea-Bissau has shown continued resilience reflecting favorable terms of trade developments and continued strong investment spending. Program performance was negatively affected by policy slippages as well as the political disruptions at the end of 2025, but the authorities have since moved to address this through corrective measures. There are significant downside risks to the outlook and strong program ownership and engagement with the Fund remain paramount.
“The fiscal deficit declined significantly in 2025 despite being above program targets. Continuing the path of fiscal consolidation is essential to underpin further improvements in debt sustainability. To that end, the 2026 budget accelerates fiscal consolidation with a view to maintaining a surplus on the primary balance and reducing the overall deficit to 4.0 percent of GDP. This is underpinned by close control of the wage bill on the expenditure side and a series of measures on the revenue side, including updated customs valuations, a more rigorous pursuit of arrears, and a stronger focus on large taxpayers. It is paramount to avoid any future fiscal slippages and avoid any recurrence of underreported expenditure and arrears.
“Further steps have been taken to address financial sector vulnerabilities. The divestment from the undercapitalized bank has been completed and its recapitalization is underway. The first capital injection has been completed, and an additional capital injection is expected shortly to help the bank restore its solvency. The authorities should ensure that the restructuring process is completed in a timely manner, including the additional capital injection that is necessary to bring the capital adequacy ratio in line with regulatory requirements.
“Energy sector reforms are essential to both reduce fiscal risks and boost growth potential. Recent reforms in the public electricity generator have stemmed losses and ensured cost recovery whilst also driving increased consumer and industrial connectivity. The authorities are exploring options to boost capacity through the regional market or additional private suppliers.
“Progress in governance reforms is encouraging with increased transparency in public tender information and beneficial ownership data. However, stronger efforts are needed in the area, including to boost accountability and transparency, and improve the business climate.”
read more: https://www.imf.org/en/news/articles/2026/03/20/pr-26084-guinea-bissau-imf-completes-9th-and-10th-rev-under-ecf-arrang
