Via IMF (Den Internationale Valutafond)

IMF Executive Board Approves US$148 Million Disbursement to Guinea to address the COVID-19 Pandemic







June 19, 2020











  • The IMF Executive Board approves the 70th request for emergency financial assistance to help its member countries address the challenges posed by COVID-19.
  • The IMF approved the disbursement of US$148 million to Guinea under the Rapid Credit Facility (RCF) to address urgent balance of payment and fiscal financing needs stemming from the COVID-19 pandemic.
  • Guinea is being severely affected by the COVID-19 pandemic, which has deteriorated its short-term growth prospects and hindered mining export and tax revenues.
  • The IMF disbursement will provide needed financing for the implementation of the authorities’ response plan to address the COVID-19 health emergency and mitigate its severe impact.

Washington, DC –
On June 19, 2020, the Executive Board of the International Monetary Fund
(IMF) approved a disbursement of SDR 107.1 million (about US$148 million)
to Guinea under the Rapid Credit Facility (RCF). This, together with debt
relief received on April 13 under the Catastrophe Containment and Relief
Trust (CCRT), will help the country address urgent balance of payments and
fiscal financing needs stemming from the negative impact of the COVID-19
pandemic and mitigation measures. IMF financing will also contribute to
catalyzing donors’ financial support.

Guinea is being severely affected by the COVID‑19 pandemic. Worsening
global conditions and a rapidly spreading local outbreak have deteriorated
Guinea’s short-term growth prospects and hindered mining exports and tax
revenues.

The disbursement under the RCF will provide needed financing for the
implementation of the authorities’ response plan to address the COVID-19
health emergency and mitigate its severe impact. Key measures will focus on
scaling-up health spending, protecting the most vulnerable from the impact
of the crisis, and supporting the private sector. The authorities are
taking steps to ensure transparency and accountability in the use of
resources to address the COVID-19 crisis.

Following the Executive Board’s discussion on Guinea, Mr. Mitsuhiro
Furusawa, Acting Chair and Deputy Managing Director, issued the following
statement: “Guinea has been severely affected by the COVID-19 pandemic.
Worsening global conditions and a rapidly spreading local outbreak have
further weakened the short-term outlook. The pandemic and mitigation
measures have given rise to urgent balance of payments and fiscal financing
needs. The disbursement under the Rapid Credit Facility will provide timely
support to address these needs and should help catalyze donors’ financial
assistance.

“The authorities have adopted a comprehensive plan to respond to the
emergency and mitigate the impact of the crisis. Key measures focus on
scaling-up health spending, protecting the most vulnerable and supporting
the private sector. Non-priority spending will be contained to free
resources for the emergency response. The authorities are also implementing
measures to ensure the appropriate use and monitoring of emergency
resources.

“Using external buffers while allowing greater exchange rate flexibility
will contribute to responding to the shock while preserving an adequate
level of reserves. The central bank will continue to limit its
interventions in the foreign exchange market and implement a rule-based
intervention strategy. Monetary policy will be oriented towards preserving
liquidity in the banking sector while containing inflation. To this end,
limiting central bank budget financing will be important.

“Beyond addressing immediate needs stemming from the crisis, preserving
medium-term fiscal and debt sustainability is key. For this, the
authorities will target a lower-than-previously-planned primary fiscal
deficit path once the crisis subsides. Ensuring debt transparency and
moving forward with reforms to strengthen debt management will also be
critical.’’

More information:

IMF Lending Tracker (emergency financing request approved by the IMF
Executive Board)

https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker

IMF Executive Board calendar

https://www.imf.org/external/NP/SEC/bc/eng/index.aspx


IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: Meera Louis

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson








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