The board of directors of the African Development Bank (AfDB), approved on Wednesday 5th June a loan of 26 million euros to Equatorial Guinea, to finance the support project for the modernisation of public finances (PAMFP).
This institutional support will be implemented in the 2019-2023 period, with the aim of supporting the authorities in their efforts to strengthen governance and modernise the management of public finances. This initiative comes within the context of the fall in the price of oil, which began in 2014, and a programme of economic and financial reforms backed by the IMF in four priority areas: first the modernisation of the regulatory framework of public finance management in order to improve performance and accountability; second is to strengthen the mobilisation of non-petroleum income in order to create room to manoeuvre for the financing of the National Economic and Social Development Plan.
The third is the computerisation and interconnection of financial authorities in order to strengthen rigour, transparency, control and efficiency in the management of resources, and finally, the creation of the capacity to manage public finances to improve the efficiency of the design and implementation of public policy.
The bank is committed to supporting authorities in this effort to modernise public finances and fiscal adjustment, through the strengthening of the mobilisation of non-petroleum resources and greater control over public spending. The aim is to re-establish the budgetary margins for manoeuvre which are necessary for economic diversification.
Source: Equatorial Guinea Press and Information Office