The International Monetary Fund (IMF) has approved a US$24-million loan to Guinea Bissau, that country’s news agency ANG reported on Monday.

The loan is part of a three-year programme between the international institution and the African country.

According to an IMF statement – as quoted by ANG –, the approval of the loan comes after Guinean authorities were able to demonstrate a commitment to political and macroeconomic stability in the country.

Guinean Minister of Economy and Finance, Geraldo Martins, described the IMF’s move as an important step toward the normalisation of its relations with the country, the report added.

According to ANG, the IMF also said Guinea Bissau needs to deal with important socioeconomic challenges. The organisation stressed the importance of having budgetary discipline and efficient public spending.

The IMF also encouraged the Guinean Government to continue its efforts in “mobilising revenues”. The institution also recommended creating an additional budget to deal with the country’s development needs, ANG reported.