Guinea Bissau gets $8.7m budget support grant
An $8.7 billion (€6.49 million) budget support grant for Guinea Bissau has been approved by the African Development Bank's (AfDB) Board of Directors.The money, which consists of $6.1 million provided by the Fragile States Facility and $2.6 million from the African Development Fund, will be used to help the country's economy recover from the global financial crisis and cut its budget deficit.
Budget operations in Guinea Bissau will be made "more credible and transparent", the AfDB explained, as reforms in this area that began three years ago will also be strengthened with a portion of the capital.
According to the CIA, the country is one of the six poorest in the world, with its economy - which had been growing due to tightening of monetary policy and public sector development - being severely damaged by a civil war in 1998. Commenting on the move, Director of the Economic and Financial Governance Department at the AfDB Gabriel Negatu said the fund "will allow to reinforce the effectiveness of economic policy and to stabilise the economy after several years of conflict".