IMF staff agree to extend credit facility for Guinea-Bissau

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• The IMF staff and Guinea-Bissau have reached a staff-level agreement on economic policies that could support the Eleventh Review of the Extended Credit Facility (ECF) arrangement. Upon completion of the review by the IMF Executive Board, Guinea-Bissau will have access to approximately US$1.6 million.
• The staff-level agreement reflects strong program performance and continued commitment by the authorities to prudent macroeconomic policies, fiscal discipline, and structural reforms aimed at preserving macroeconomic stability and supporting inclusive growth.
• Growth is expected to moderate in 2026, with downside risks mainly due to continued high fuel prices and possible delays in the cashew marketing campaign. These risks call for sustained fiscal discipline, strengthened revenue mobilization, and cautious cashew revenue programming to safeguard macroeconomic stability and protect priority spending. 

A team from the International Monetary Fund (IMF), led by Niko Hobdari, mission chief for Guinea-Bissau, held discussions in Bissau from April 21–29, 2026, on macroeconomic policies for the Eleventh Review of the ECF arrangement.                                                                                                                                 

This staff-level agreement is contingent on the implementation of the agreed prior actions and is subject to IMF Management approval and Executive Board consideration. The arrangement was approved by the IMF Executive Board for a total amount of SDR 28.4 million (about US$37.3 million) on January 30, 2023. The IMF Executive Board granted an augmentation of access (to 140 percent of quota or SDR 39.76 million) on November 29, 2023.

At the conclusion of the mission,  Hobdari issued a statement saying: “I am pleased to announce that we have reached a staff-level agreement with the Guinea-Bissau authorities on economic and financial policies that could support the approval of the Eleventh Review of the ECF program. Conclusion of the Review by the IMF Executive Board would enable the disbursement of SDR 1.18 million (about US$1.6 million), bringing total disbursements under the arrangement to SDR 38.58 million (about US$52.8 million).

“All end-March 2026 program targets were met. Specifically, the authorities met all quantitative performance criteria, indicative targets, structural benchmarks as well as all continuous performance criteria so far, reflecting continued commitment to the ECF-supported reform agenda.

“Economic growth in 2025 is estimated to have remained strong at 5.8 percent, supported by robust agricultural production, particularly cashew exports, and solid private investment. Growth is projected to moderate in 2026 amid a more challenging external environment, including higher global fuel prices related to the conflict in the Middle East and potential disruptions to the cashew marketing campaign due to production and logistical constraints.

“The authorities remain committed to achieving the 2026 domestic primary surplus target through strengthened revenue mobilization and strict expenditure prioritization. To ease revenue pressures and safeguard program objectives, they are implementing prior actions focused on reinforcing tax administration, tightening expenditure controls, strengthening debt management, and preserving investor confidence. Together with ongoing structural reforms, these efforts are critical to maintaining macroeconomic stability and supporting inclusive growth.

“Looking ahead, the outlook remains subject to significant downside risks, including adverse weather conditions, negative terms-of-trade developments, and tighter financing conditions. Against the backdrop of a tight fiscal space, the authorities’ commitment to curtail non-priority spending until cashew-related revenues materialize, alongside proactive cash-management practices, will help ease financing pressures. Continued efforts to promote economic diversification including in fisheries and extractive sectors such as oil, phosphate, and bauxite will be key to strengthening resilience over the medium term.

“The IMF staff thanks the authorities for their cooperation and constructive policy dialogue.”

The IMF team met with the transitional Prime Minister and Minister of Finance Té, the BCEAO National Director Cassama, and other senior government officials, as well as representatives of public sector enterprises and key bilateral and international partners.

The Extended Credit Facility (ECF) provides financial assistance to countries with protracted balance of payments problems. It supports countries’ economic programs aimed at moving toward a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth. The ECF may also help catalyze additional foreign aid.

Tags: IMF Niko Hobdari