IMF Hints at Debt Relief for Guinea-Bissau

Guinea-Bissau may be eligible for “significant” debt relief under an International Monetary Fund program that aims to increase state revenue and diminish expenditure for salaries of civil servants, an IMF official revealed.

If the African nation charts progress under IMF’s Highly Indebted Poor Countries initiative, it may have some 75 percent of its debt cancelled, according to Paulo Drummond, the fund’s mission chief in Guinea-Bissau.

“These are very preliminary figures, but we might be talking about $700 million to $800 million in debt relief,” Drummond told Bloomberg in a May 14 interview.

Guinea-Bissau’s outstanding external debt is USD1.06 billion.

About the author

  • Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.

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