The three\u2011year programme, approved in January 2023 and extended through December 2026, aims to strengthen governance, ensure debt sustainability and create fiscal space for inclusive growth.<\/p>\n
<\/p>\n
The latest disbursement brings total support under the programme to $50.8 million. However, the IMF noted that programme performance since the previous review in June 2025 has weakened. Several quantitative targets were missed, and many structural reforms were either delayed or not implemented.<\/p>\n
<\/p>\n
Despite these setbacks, the Fund granted waivers for the non\u2011observance of performance criteria and approved modifications to programme targets, recognising corrective steps taken by the authorities following political disruptions late in 2025.<\/p>\n
<\/p>\n
Guinea\u2011Bissau\u2019s economy grew by an estimated 5.5% in 2025, supported by strong cashew production and favourable terms of trade. Inflation eased to 0.9% on average, while the current account deficit narrowed to 6.2% of gross domestic product (GDP). Public debt fell to 75.3% of GDP, though the IMF warned that maintaining a downward trajectory will require ongoing fiscal discipline.<\/p>\n
<\/p>\n
The fiscal deficit, however, was larger than expected due to weak revenue collection, higher interest costs and lower budget support. The 2026 budget aims to restore fiscal stability by targeting a primary surplus and reducing the overall fiscal deficit to 4% of GDP.<\/p>\n
<\/p>\n
IMF Deputy Managing Director Li said that although Guinea\u2011Bissau\u2019s economy shows resilience, significant risks remain. He welcomed the authorities\u2019 steps to recapitalise an undercapitalised bank, noting that the first injection has been completed and further capitalisation is expected soon.<\/p>\n
<\/p>\n
Li highlighted progress in energy\u2011sector reforms that have reduced losses in the public electricity company and improved cost recovery. He stressed the need to expand capacity through regional markets or private suppliers.<\/p>\n
<\/p>\n
While acknowledging improvements in transparency, Li called for stronger efforts to enhance accountability, reduce corruption and improve the business environment.<\/p>\n
<\/p>\n
The IMF said sustained engagement and strong national ownership of reforms remain essential as Guinea\u2011Bissau navigates a fragile economic outlook.<\/p>\n
<\/p>\n
–IMF\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":29594,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-29593","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"The International Monetary Fund\u2019s (IMF) Executive Board has completed the ninth and tenth reviews of Guinea\u2011Bissau\u2019s Extended Credit Facility arrangement, unlocking a disbursement of $3.2 million. ","published_date":"","news_description":"The International Monetary Fund\u2019s (IMF) Executive Board has completed the ninth and tenth reviews of Guinea\u2011Bissau\u2019s Extended Credit Facility arrangement, unlocking a disbursement of $3.2 million. ","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/29593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/29593\/revisions"}],"predecessor-version":[{"id":29595,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/29593\/revisions\/29595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/29594"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=29593"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=29593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}