IMF approves $23.5 million disbursement for Guinea amid coronavirus economic turbulence

The International Monetary Fund (IMF) has approved $23.5 million disbursement for Guinea amid coronavirus economic instability. The approval brings total disbursements under an extended credit facility (ECF) for Guinea to $117.6 million.

An extended credit facility (ECF) allows the borrowing country to take out money over an extended period of time rather than reapplying for a loan each time it needs money.

In making the approval, IMF said while performance under the Fund-supported program remains broadly satisfactory, Guinea faces significant downside risks related to COVID-19 pandemic.

The Fund will remain closely engaged with the Guinean country authorities as the situation evolves, and as the authorities further develop their policy responses and financing needs change, IMF said.The ECF arrangement supports strengthening Guinea’s resilience, scaling-up growth-supporting investment and social-safety nets and promoting private sector

“Beyond immediate needs created by the COVID-19 crisis, creating fiscal space for priority
spending will be pivotal to foster broad-based growth in the years to come. Achieving a basic fiscal surplus in 2020 will contribute to containing inflation and preserving debt sustainability,” said Mr. Mitsuhiro Furusawa, Acting Chair and Deputy Managing Director at the IMF.

He said mobilizing additional tax revenues and reducing un-targeted electricity subsidies will generate resources to scale-up public investments and strengthen social safety nets.

“To this end, implementing programmed tax revenue measures, adopting an automatic petroleum prices adjustment mechanism, and advancing the multi-year tariff electricity tariff is key. Prudent external borrowing strategy will support scaling-up public investments, notably in infrastructure. Strengthening public investment management will support the fiscal strategy and enhance governance,” Furusawa added.

According to him, allowing greater exchange rate flexibility is important to preserve buffers against external shocks.

“Continuing to limit central bank interventions in the foreign exchange market will be important. Reforms to strengthen market forces in the foreign exchange market have
progressed well. Moving ahead with the implementation of a rule-based central bank’s
intervention strategy will reduce discretion.

“Continuing to limit central bank’s lending to the government in line with program objectives is needed to reduce inflation. A more active liquidity management will also support achieving monetary targets. Strengthening banking supervision and regulation will support financial stability,” Furusawa said.

Read full article

Simon Ateba
Simon Ateba
Based in Washington, District of Columbia, United States of America, Simon leads a brilliant team of reporters, freelance journalists, analysts, researchers and contributors from around the world to run TODAY NEWS AFRICA as editor-in-chief. Simon Ateba's journalistic experience spans over 10 years and covers many beats, including business and investment, information technology, politics, diplomacy, human rights, science reporting and much more. Write him: [email protected]


Please enter your comment!
Please enter your name here

Trending Now

President Buhari snubs Finance Minister Zainab Ahmed in SEC appointments

More insights emerged on Tuesday on the nomination of Mr. Lamido Yuguda as the new Director-General of the Securities and Exchange...

One of Nigeria’s most corrupt pastors Chris Oyakhilome sanctioned by UK regulators for spreading falsehood and linking 5G to coronavirus

One of Nigeria's most corrupt pastors Chris Oyakhilome who has become infamous for imposing gate fees during end of the year's...

Popular Cameroonian pastor Frankline Ndifor who laid hand on COVID-19 patients dies from coronavirus

A popular Cameroonian pastor Frankline Ndifor who laid hands on COVID-19 patients has been killed by the deadly bug, and authorities...

Inside Angola’s First Lady Ana Dias Lourenço’s medical evacuation to Paris amid COVID-19 travel restrictions

It was not clear when things worsened. Life inside any presidential palace can be full of secrecy. The people outside often...

Donald Trump may not hang the official portrait of America’s first black President Barack Obama at the White House

President Donald Trump may not unveil the official portrait of America's first black President Barack Obama at the White House.
- Advertisement -



Read full article

Subscribe to copy our content and download file