VZCZCXRO6796
RR RUEHMA RUEHPA
DE RUEHRY #1106 2771354
ZNR UUUUU ZZH
R 041354Z OCT 07
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC 1717
INFO RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS CONAKRY 001106 
 
SIPDIS 
 
DEPT PLEASE PASS TO USTR FOR LAURIE ANN AGAMA 
AMEMBASSY DAKAR PLEASE PASS TO WATH 
AMEBASSY ACCRA PLEASE PASS TO WATH 
COMMERCE FOR SALIHA LOUCIF 
TREASURY FOR OFFICE OF AFRICAN NATIONS 
TREASURY FOR USED IMF AND USED WORLD BANK 
 
SIPDIS 
SENSITIVE 
 
E.O. 12598:  N/A 
TAGS: EFIN ECON IMF PGOV GV
SUBJECT: GUINEA MAKES ANOTHER GOOD IMPRESSION ON IMF 
 
 
¶1.  (SBU) SUMMARY.  IMF team leader, Jean Le Dem, was optimistic 
with respect to Guinea's progress towards a return to an IMF funded 
program.  After a ten-day visit, which ended October 3, Le Dem said 
that Guinea is essentially on track, but expressed concern over 
Central Bank operations and external debt arrears.  Le Dem stated 
that if Guinea continues with necessary macro-economic reforms, he 
plans to propose that Guinea return to a funded program during the 
November IMF Board meeting.  END SUMMARY. 
 
¶2.  (SBU) DCM and econoff attended an out-briefing hosted by Le Dem 
and resident IMF representative, Alvin Hillaire, during which Le Dem 
expressed cautious optimism for Guinea's continued progress on 
macro-economic reforms.  Le Dem said that the Government of Guinea 
is more transparent with respect to spending processes.  He also 
identified the just completed IMF audit of the ministries as a good 
baseline study for measuring future improvements in government 
operations. 
 
¶3.  (SBU)  Although he acknowledged improvements in Central Bank 
operations, Le Dem said that the Bank is still not up to par and 
needs to conduct a thorough "cleaning" of accounts.  Le Dem added 
that President Conte told him privately that he would not interfere 
in government operations.  Conte reportedly said that he was not 
interested in taking any funds from the government since he already 
has enough money. 
 
¶4.  (SBU) Le Dem added that payment of Guinea's substantial external 
debt arrears could pose difficulties in attaining IMF targets.  Le 
Dem is in favor of addressing Guinea's debt through either 
rescheduling or forgiveness. 
 
¶5.  (SBU) Turning to Guinea's 2008 budget proposal, Le Dem said that 
the budget is overly ambitious with respect to revenue projections 
and that proposed spending is too high.  He also expressed concern 
about how the military's potential demands for pay increases could 
impact the precarious financial health of the reform government. 
 
¶6.  (SBU) In closing, Le Dem stated that he had a meeting with the 
Prime Minister that afternoon, during which he planned to push for 
an end to rice and gasoline subsidies as well as to the ban on the 
export of agricultural products.  (NOTE: The export interdiction is 
currently set to end in December. END NOTE).  Le Dem said that the 
price subsidies are a concern given continued price increases on the 
world market, which means that the subsidies could 'break' the 
proposed 2008 budget. 
 
CARTER