The International Monetary Fund (IMF) has suspended its financial assistance to Guinea Bissau after authorities disbursed FCFA35.2 billion (about €63 million) from the State’s accounts to bailout private sector’s actors. This was announced in June by the multilateral institution, after one of its mission spent two weeks in the country.

At the beginning of May, the government of Guinea Bissau disbursed this money without taking into account legal guarantees or impact on the economy, or even commitments binding the country with international financial institutions such as the IMF.

Few days after the money was disbursed, Prime Minister Carlos Correia was removed from his position by President José Mario Vaz.

The new Prime Minister, Baciro Djá said that by cutting its support, “IMF puts the government of Guinea Bissau in alert”.

Henrique Horta dos Santos, the new Economy and Finance minister has been restless since the situation emerged. “If the Fund turns its back on us, it means we are a poor manager. This means you were a student. It further means that your management must be sanctioned. For this, you will pay. The price? We shall see, the court will determine the punishment,” he said.

According to Mr. Horta dos Santos, the African Development Bank (AfDB) and the European Union (EU) also said they were also halting their financial support to Guinea Bissau for the same reasons as the IMF.