A team from the International Monetary Fund (IMF), led by Mission Chief Niko Hobdari, has reached a staff-level agreement with authorities in Guinea-Bissau regarding the Ninth Review of the country’s Extended Credit Facility (ECF) arrangement. The meetings took place in Bissau between September 23 and October 3, 2025.
The agreement is dependent on the completion of previously agreed actions and still requires approval from IMF management and consideration by the Executive Board. The original ECF arrangement for Guinea-Bissau was approved by the IMF Executive Board in January 2023 for SDR 28.4 million (approximately US$37.3 million). In November 2023, access under this program was increased to SDR 39.76 million.
Niko Hobdari stated: “I am pleased to announce that the Guinea-Bissau authorities and the IMF staff have reached a staff-level agreement on economic and financial policies that could support the approval of the Ninth Review of the ECF program. Conclusion of the Review by the IMF Executive Board would enable the disbursement of SDR 2.36 million (about US$3.2 million), bringing total disbursement under the arrangement to SDR 37.4 million (about US$51.3 million).
“Growth is expected to reach 5.5 percent in 2025 on the back of strong cashew nut production and improvements in the terms of trade. Strong private consumption and investment also support economic activity. The fiscal deficit is projected to be larger than expected, reflecting a shortfall in revenues.
“Despite some progress, program performance has been mixed. Seven out of ten Quantitative Performance Criteria (QPC) for June 2025 were met. The QPC on the wage bill was missed by a small margin. The zero ceiling on non-regularized expenditures (DNT) and the QPC on other common expenditures were also breached. Nonetheless, the authorities continue to make progress with regard to structural benchmarks, albeit with some delays.
“The 2025 budget faces significant pressures due to lower-than-expected revenues and spending overruns in the first half of the year. In this context, the authorities are committed to implementing a set of corrective fiscal measures to reach the revised deficit target of 4.2 percent of GDP in 2025. In 2026, they plan to introduce further measures to enhance domestic revenue mobilization and strengthen expenditure controls, with the aim of achieving a fiscal deficit target of 3.5 percent of GDP.
“Looking ahead, advancing key structural reforms will support inclusive growth and economic diversification. These include reforms to improve governance and address corruption, and efforts to invest in infrastructure and ensure backup power supply. On the fiscal front, authorities should rationalize tax exemptions, accelerate tax administration reforms, and strengthen implementation of new Value Added Tax to create fiscal space for much-needed development spending. Managing fiscal risks from state-owned enterprises and banking sector as well as seeking grants and loans on highly concessional terms will be essential for ensuring fiscal sustainability.
“The IMF team commended authorities for their continued engagement and emphasized importance of maintaining reform momentum to safeguard macroeconomic stability and support long-term development objectives.”
During its mission, IMF representatives held discussions with President Embalo; Prime Minister Camara; Minister of Finance Té; Minister of Economy, Planning and Regional Integration Sambu; Minister of Energy Forbes; BCEAO National Director Cassama; officials from several ministries including Finance, Economy, Agriculture, Fisheries, Justice, Public Health; representatives from BCEAO’s National Directorate; National Institute of Statistics; Court of Accounts; procurement authorities; public- and private-sector enterprises; as well as bilateral partners [[Guinea-Bissau & IMF](https://www.imf.org/en/Countries/GNB)].
The ECF provides financial assistance for countries experiencing persistent balance-of-payments difficulties while supporting programs designed for stable macroeconomic positions conducive toward poverty reduction efforts.