Guinea : cash transfer

The program provides $10 million from the Economic Support Fund (ESF) to help the GOG fill its balance of payments deficit and to stimulate private sector imports and increased commercial lending. TA in support of GOG reforms will be provided under complementary project 6750218. ESF dollars will be made available to private importers to stimulate private sector imports. To stimulate the availability of commercial credit, the GOG will release to the commercial banking system the equivalent of $10 million in Guinean francs for loans to private traders and entrepreneurs. Specific policy reforms supported by the cash transfer are: (1) unrestricted private sector rights to import, sell, and distribute agricultural production inputs, including the eventual disengagement of the state from these activities; (2) free and open trade in the marketing, purchase, sale, and/or export of all crops; (3) removal of all government subsidies on sales of agricultural production inputs; (4) enunciation of a comprehensive credit policy, including specific guidelines for short- medium-, and long-term credit; and (5) promulgation of revised commercial and investment codes which will permit participation by all segments of the private sector. Development assistance funds provided under project 6750218 will finance long- and short-term advisors, economic and sector studies, on-the-job training and seminars, and evaluation of GOG"s domestic credit and policy reform program. See abstract under that number.