Press Release No. 12/26

Press Release: IMF Concludes Staff Visit to Guinea-Bissau

January 25, 2012

An International Monetary Fund (IMF) mission led by Mr. Paulo Drummond visited Guinea-Bissau during January 18-24, 2012. The mission met with Prime Minister Carlos Gomes Junior, Minister of Finance José Mario Vaz, Minister of Economy Helena Embaló, as well as development partners. At the conclusion of the visit, the mission issued the following statement.

“The mission welcomes the authorities’ renewed commitment to the economic program supported by the IMF’s Extended Credit Facility (ECF) arrangement. The mission is also encouraged by the prospects of r support to the government by the international community. The country is now preparing for presidential and legislative elections this year. Economic stability and development will hinge on a peaceful transition in the period ahead.

“Economic performance has been satisfactory. Preliminary data through December 2011 suggests the government’s economic program is on track. Economic reforms have continued to advance in the areas of public financial management, tax administration, and debt management. The full unification of the government payroll system is now expected to be completed in the coming months, rounding up a long process of reform that should serve the country well.

“The IMF will continue to play its role as a partner of Guinea-Bissau. Decisive implementation of the ECF-supported program will put public finances on a stronger footing, can help catalyze much-needed budget support, and should pave the way for sustainable growth. A mission will return to Bissau in the Spring to assess the economic situation and conduct the fourth review under the ECF.”