## IMF Executive Board Approves a US$125 Million Disbursement Under Benin’s ECF-Supported Arrangement

_IMF News, May 15, 2020_

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## Bibliographic details
- Published: May 15, 2020

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### 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.*

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## References

- [https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)
- [The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker](https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker)
- [https://www.imf.org/external/NP/SEC/bc/eng/index.aspx](https://www.imf.org/external/NP/SEC/bc/eng/index.aspx)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2020/05/15/pr20216-benin-imf-executive-board-approves-us-125m-disbursement-under-ecf-supported-arrangement_