The agreement follows discussions in Bissau from February  3 to 13 and remains subject to IMF Management approval and a decision by the Executive Board. If approved, the reviews would unlock a disbursement of $3.3 million, bringing total disbursements under the programme to 37.4 million Special Drawing Rights.

The four‑year ECF arrangement, originally approved in January 2023, has been augmented twice and now provides access equivalent to 140% of quota.

The IMF estimates that Guinea‑Bissau’s economy grew by 5.5 per cent in 2025, supported by strong cashew production and favourable terms of trade. Average inflation fell to 0.9% as food prices eased. However, the fiscal deficit widened due to weaker revenue collection, higher interest payments and lower than expected external budget support. Public debt declined to 74.3% of gross domestic product, but the Fund says sustained fiscal consolidation and cautious borrowing will be essential to keep debt on a downward path.

Following a staff‑level agreement reached in October 2025, programme implementation slowed after a change in government in November. Tighter regional financial conditions further strained financing. Despite these pressures, the transitional authorities reaffirmed their commitment to the ECF programme and have taken steps to reinforce fiscal discipline, including stricter expenditure controls and a zero ceiling on non-essential spending.

Corrective measures agreed in the previous review have been implemented, and additional revenue and spending steps were adopted as prior actions for the combined reviews. The IMF and authorities also agreed to extend the programme by five months to December 29 2026, to help anchor economic policies and support execution of the 2026 budget.

The IMF warns that the outlook remains vulnerable to weather shocks, lower cashew prices, political instability and tighter financing conditions. The mission praised the authorities for constructive engagement throughout the discussions.

–IMF/ChannelAfrica–