IMF Executive Board Approves a US$125 Million Disbursement Under Benin’s ECF-Supported Arrangement
IMF News, May 15, 2020
Source details
- Canonical URL
- IMF Executive Board Approves a US$125 Million Disbursement Under Benin’s ECF-Supported Arrangement
Other formats
Bibliographic details
- Published: May 15, 2020
Disbursement and access augmentation
- The Executive Board decision allows an immediate disbursement of US$125.1 million to Benin to address the urgent financing needs stemming spread of COVID-19 and to mitigate its economic and social impacts.
- Completion of the sixth and final review enables the disbursement of SDR 91.931 million (about US$125 million), bringing total disbursements under the arrangement to SDR 187.43 million (about US$ 254.8 million).
- The Executive Board approved the authorities’ request for an augmentation of access under the ECF arrangement of 61.4 percent of Benin’s quota (SDR 76.013 million or about US$103.3 million) to address urgent financing needs related to COVID-19.
Program background and performance
- Benin’s three-year arrangement of SDR 111.42 million (about US$151.5 million, 90 percent of Benin’s quota) was approved on April 7, 2017.
- This sixth review marks the end of the three-year Fund-supported program.
- Implementation of the program has been described as "very satisfactory."
- All quantitative performance criteria at end-December 2019 and structural benchmarks under the review were met.
Authorities’ response plan and policy focus
- The authorities are implementing a response plan that will:
- raise significantly health spending,
- provide support to vulnerable households through cash transfers,
- provide support to impacted businesses.
- The authorities aim to safeguard hard-won fiscal achievements while taking immediate actions to address human and economic implications of the crisis.
- Once the shocks wear off, the authorities expect to revert to their medium-term fiscal path by maintaining the deficit within the regional ceiling to safeguard fiscal sustainability.
- On the economic reform front, the authorities plan to pursue efforts to:
- modernize the Beninese economy,
- diversify the economic structure,
- improve the business environment,
- strengthen the banking sector.
IMF observations and recommendations (statement by Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair)
- Benin’s strong growth momentum has been halted by the COVID-19 pandemic and border closure with Nigeria; growth is projected to decelerate and the outlook is subject to a high degree of uncertainty.
- Sound and transparent public financial management will be paramount with the sizeable reprioritization of spending.
- Careful monitoring and ex-post audit of the execution of the new measures will strengthen accountability and ensure that the additional funds are spent as intended.
- The authorities’ response plan focuses on raising healthcare spending, granting cash transfers to vulnerable households, and providing support to impacted businesses.
Key statistics and dates
- Immediate disbursement approved: US$125.1 million
- Disbursement amount in SDR for sixth review: SDR 91.931 million (about US$125 million)
- Total disbursements under the arrangement after sixth review: SDR 187.43 million (about US$ 254.8 million)
- Original three-year arrangement size: SDR 111.42 million (about US$151.5 million, 90 percent of Benin’s quota)
- Augmentation of access approved: 61.4 percent of Benin’s quota (SDR 76.013 million or about US$103.3 million)
- Original approval date of three-year arrangement: April 7, 2017
- Press Release No.: 20/216
- Press release date: May 15, 2020
Press Release No. 20/216, May 15, 2020.
