Benin: Second Review under the Extended Fund Facility and the Extended Credit Facility Arrangements—Press Release; Staff Report; Debt Sustainability Analysis and Statement by the Executive Director for Benin
IMF Staff Country Reports, May 24, 2023
Source details
- Canonical URL
- Benin: Second Review under the Extended Fund Facility and the Extended Credit Facility Arrangements—Press Release; Staff Report; Debt Sustainability Analysis and Statement by the Executive Director for Benin
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Bibliographic details
- Published: May 24, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400243486.002
Program performance and macroeconomic monitoring
- Program performance has been robust.
- All end-September and end-December 2022 performance criteria and indicative targets were met.
- All structural benchmarks were implemented.
Fiscal policy, consolidation, and social protection
- Revenue-based fiscal consolidation is underway after three years of warranted policy accommodation amidst repeated and severe exogenous shocks.
- Consolidation is underpinned by:
- Robust tax collection.
- Spending reprioritization to shield social programs and help meet Benin’s large development and security-related needs.
- The recently established social registry is intended to channel timely support to vulnerable households in a world more prone to shocks.
- Swift full operationalization of the social registry is critical to improve the targeting and efficiency of social programs as their coverage expands.
Structural reforms and institutional measures
- The structural reform agenda is advancing, including:
- Completion and publication of the IMF governance diagnostic.
- Adoption of a financial inclusion strategy.
- Digitalization of land title requests.
- Submission to Parliament of a draft law to ensure the sustainability of the authorities’ flagship school feeding program.
Key takeaways
- Robust program implementation in 2022 as evidenced by all performance criteria, indicative targets, and structural benchmarks met for end-September and end-December 2022.
- Policy shift from warranted accommodation to revenue-based fiscal consolidation after three years of shocks.
- Emphasis on protecting social programs while meeting development and security needs.
- Progress on governance, financial inclusion, land administration digitalization, and social program sustainability legislation.
Benin: Second Review under the Extended Fund Facility and the Extended Credit Facility Arrangements—Press Release; Staff Report; Debt Sustainability Analysis and Statement by the Executive Director for Benin, May 24, 2023.
Content in this bundle
- Benin — Second ECF/EFF Review