Guinea-Bissau: Third Review Under The Extended Credit Facility Arrangement And Requests For Augmentation Of Access, Waiver Of Nonobservance Of Performance Criteria, Modification Of A Performance Criterion, and Financing Assurances Review-Press Release

Guinea Bissau’s socio-political context remained stable during the transition to an opposition-led new government, but the country is facing an adverse external shock. Disappointing cashew nut exports have widened the current account deficit substantially, while financing is constrained by tighter regional financial conditions. High food prices are causing food insecurity risks. Against this backdrop, the authorities have requested augmentation of access of 40 percent of quota (SDR 11.36 million) to meet pressing financing needs, bringing the total program access to 140 percent of quota (SDR 39.76 million). The ECF-supported program has been catalyzing much-needed highly concessional financing, especially additional budget support.