UN supervises $18.3 million emergency fund for government

The United Nations Development Programme (UNDP) has agreed to manage a fund of donor money contributed to support the transitional government of Guinea-Bissau as it leads the country back to democracy. UNDP said in a statement that the Emergency Economic Management Fund would be used to help cover an expected $18.3 million budget deficit. The money would be used to pay the salaries of key government employees, such as teachers, health workers and workers of the state-owned water and electricity company, UNDP said. It would also be used for technical assistance to improve financial management within the government and reform the civil service, it added. The plan was explained to donors at a meeting organised by the World Bank in Paris on 18 December. So far the Netherlands have contributed US$2 million to the Emergency Economic Management Fund, while Portugal has contributed $1 million and Angola has pledged $500,000. The UNDP said Sweden had also pledged to make a contribution. Guinea-Bissau degenerated into economic and political chaos under former President Kumba Yala. The government of this former Portuguese colony of 1.3 million people was virtually bankrupt by the time he was deposed by a bloodless coup on 14 September. Civil servants had been unpaid for several months. The army rapidly appointed a broad-based civilian government led by President Henrique Rosa which has pledged to hold parliamentary elections on March 28. Presidential elections are due to be held a year later to complete the country's rule to constitutional rule.