A republic of West Africa, Guinea-Bissau lies on the Atlantic Ocean. Area: 36,125 sq km (13,948 sq mi). Pop. (1995 est.): 1,073,000. Cap.: Bissau. Monetary unit: Guinea-Bissau peso, with (Oct. 6, 1995) a free rate of 16,036 pesos to U.S. $1 (28,513 pesos = £1 sterling). President in 1995, João Bernardo Vieira; prime minister, Manuel Saturnino da Costa.
In mid-January 1995 the International Monetary Fund approved a number of loans equivalent to $14 million to Guinea-Bissau to extend over a three-year period in support of the government’s economic reform program. The first loan of $5 million was to be disbursed in semiannual installments. On October 10 negotiations between the government and the country’s principal trade union resulted in a 50% increase in the minimum salary for the public sector.
On June 12 Pres. Abdou Diouf of Senegal visited Guinea-Bissau to bring to an end a period of mutual hostility between the two countries. Pres. João Bernardo Vieira and Diouf issued a statement promising better economic relations between the two countries and signed an accord to share equally the offshore mineral and energy resources on their joint continental shelf. The two nations agreed to joint exploitation of an offshore oilfield that straddles their territorial waters. They also reaffirmed a 20-year agreement that committed them to joint management and exploitation of their maritime zones.
In August, Kumba Iala, the defeated candidate in the 1994 presidential elections, denounced the government for entering into preferential relations with France. He also accused the government of causing an increase in prices, especially for rice, and denounced its record on human rights.
This updates the article Guinea-Bissau, history of.