World Bank lends US $25 million

The World Bank said it approved a US $25-million loan to Guinea-Bissau on Tuesday to help the government revitalise its economic and social programmes.

The Economic Rehabilitation and Recovery Credit, to be repaid in 40 years, will be disbursed by the bank’s soft-loan arm, the International Development Association, to support the country’s National Reconciliation and Reconstruction Programme. The programme aims to support peace building, revive the economy, and to reduce poverty among the country’s 1.2 million people.

The government’s effort to rebuild the country and reconcile its divided population after a nine-month military revolt that ended in 1999, includes plans for the demobilisation, reinsertion and reintegration of armed groups, and the delivery of income relief to public sector pensioners whose claims remain outstanding.

Other aims are revitalising the private sector, maintaining macroeconomic stability and improving the management of public resources.

The credit will also help the government implement economic and social reform so that it can qualify for debt relief under the bank’s Heavily Indebted Poor Countries Initiative.