Guinea to Get $2.4 Billion Debt Relief on IMF, World Bank Plan

Guinea has reached the so-called completion point of the International Monetary Fund and World Bank’s Heavily Indebted Poor Countries’ Initiative, paving the way for $2.4 billion in debt relief, according to the government.

The West African nation’s debt will be reduced by about two thirds, it said in an e-mailed statement distributed by London- based communications company Hillingdon Cresswell.

Guinea, the world’s biggest bauxite exporter, returned to a civilian-led administration following the November 2010 election of Alpha Conde, ending two years of military rule that saw the country break relations with the international lenders. Growth is expected to reach 4.7 percent this year from 3.6 percent in 2010, according to the IMF’s World Economic Outlook April report.

The government “now intends to follow through with responsible budget management, good governance and further reforms to ensure long term and sustainable growth,” according to the statement.

In August, the IMF said Guinea would get about $28 million in the second disbursement of an extended credit facility, following a $194.5 million tranche in February. The IMF said it expects Guinea to reach the completion point under the HIPC program this month.

To contact the reporter on this story: Ougna Camara in Conakry via Accra at ocamara@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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