{
  "title": "IMF Executive Board Completes the Second Review under the Extended Fund Facility and the Extended Credit Facility Arrangements for Benin and Approves US$68 million Disbursement",
  "publication": "IMF News, May 17, 2023",
  "sourceUrl": "https://www.imf.org/en/news/articles/2023/05/17/pr23158-benin-imf-executive-board-completes-2nd-rev-eff-ecf-arr-approves-us-68m-disbursement",
  "canonical": "https://www.imf.org/en/news/articles/2023/05/17/pr23158-benin-imf-executive-board-completes-2nd-rev-eff-ecf-arr-approves-us-68m-disbursement",
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  "summary": "On May 17, 2023, the Executive Board of the International Monetary Fund completed the Second Review of Benin’s Fund-supported program.",
  "publishDate": "2023-05-17",
  "sections": [
    {
      "heading": "Review completion and disbursement",
      "content": "- Executive Board completed the Second Review of Benin’s Fund-supported program on May 17, 2023.\n- Arrangement: 42-month blended EFF/ECF, approved on July 8, 2022.\n- Immediate disbursement: SDR 50.82 million (about US$68 million) toward budget support.\n- Total disbursements under the program so far: SDR 267.42 million (about US$360 million)."
    },
    {
      "heading": "Program performance and macroeconomic outlook",
      "content": "- Program performance described as robust:\n  - All end-September and end-December 2022 performance criteria and indicative targets met.\n  - All structural benchmarks implemented.\n- Growth and activity:\n  - Economic activity estimated to have expanded by 6.3 percent in 2022, buoyed by construction and a good harvest season.\n- Outlook drivers and risks:\n  - Outlook supported by expansion of the new special economic zone and modernization of the Port of Cotonou.\n  - Material risks: protracted war in Ukraine, challenging regional security situation, with implications for external accounts and food security."
    },
    {
      "heading": "Fiscal policy, consolidation, and revenue strategy",
      "content": "- Policy stance:\n  - After three years of warranted policy accommodation, fiscal consolidation is underway.\n  - Consolidation is underpinned by robust tax collection and spending reprioritization to shield social programs and meet development and security-related needs.\n- Fiscal target:\n  - Fiscal strategy aims for convergence to an overall fiscal deficit of 3 percent of GDP by 2025, consistent with the West African Economic and Monetary Union-wide stance and the program’s debt sustainability objectives.\n- Revenue mobilization:\n  - Pending Medium-Term Revenue Mobilization Strategy (MTRS) targeted at expanding the tax base and enhancing the overall efficiency of the tax system to create fiscal space and help preserve debt sustainability."
    },
    {
      "heading": "Social protection, governance, and structural reforms",
      "content": "- Social protection:\n  - Recently established social registry intended to channel timely support to vulnerable households; swift full operationalization is critical to improve targeting and efficiency of social programs as coverage expands.\n- Structural reform progress (examples noted):\n  - Completion and publication of the IMF governance diagnostic.\n  - Adoption of a financial inclusion strategy.\n  - Digitalization of land title requests.\n  - Submission to Parliament of a draft law to ensure the sustainability of the authorities’ flagship school feeding program.\n- Authorities’ commitment:\n  - Authorities’ demonstrated commitment to reform cited as a mitigating factor against heightened global uncertainty, regional security risks, and climate change vulnerabilities."
    },
    {
      "heading": "Key statements (selected)",
      "content": "- “The authorities’ balanced policy response to external shocks, supported by frontloaded financing under the EFF/ECF, has allowed Benin to meet unanticipated spending needs related to the protracted war in Ukraine and spillovers from regional security risks while preserving macroeconomic stability.”\n- “Revenue-based fiscal consolidation is underway, after three years of warranted policy accommodation amidst repeated and severe exogenous shocks.”\n- “The pending Medium-Term Revenue Mobilization Strategy (MTRS) … will create fiscal space for Benin’s large development needs over time and help preserve debt sustainability.”\n- “The recently established social registry is much-needed to channel timely support to vulnerable households in a world more prone to shocks. Its swift full operationalization is critical to improve the targeting and efficiency of social programs as their coverage expands.”\n\nIMF Press Release No. 23/158, May 17, 2023.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Benin and the IMF\n- Burkina Faso and the IMF\n- Côte d'Ivoire and the IMF\n- Mali and the IMF\n- Niger and the IMF\n- Senegal and the IMF\n- Togo and the IMF\n- Press Releases\n- PRESS CENTER\n- PR 22/252\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/05/17/pr23158-benin-imf-executive-board-completes-2nd-rev-eff-ecf-arr-approves-us-68m-disbursement"
    }
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    "Published: May 17, 2023",
    "Executive Board completed the Second Review of Benin’s Fund-supported program on May 17, 2023.",
    "Arrangement: 42-month blended EFF/ECF, approved on July 8, 2022.",
    "Immediate disbursement: SDR 50.82 million (about US$68 million) toward budget support.",
    "Total disbursements under the program so far: SDR 267.42 million (about US$360 million).",
    "Program performance described as robust:",
    "Growth and activity:",
    "Outlook drivers and risks:",
    "Policy stance:",
    "Fiscal target:",
    "Revenue mobilization:",
    "Social protection:",
    "Structural reform progress (examples noted):",
    "Authorities’ commitment:",
    "“The authorities’ balanced policy response to external shocks, supported by frontloaded financing under the EFF/ECF, has allowed Benin to meet unanticipated spending needs related to the protracted war in Ukraine and spillovers from regional security risks while preserving macroeconomic stability.”",
    "“Revenue-based fiscal consolidation is underway, after three years of warranted policy accommodation amidst repeated and severe exogenous shocks.”",
    "“The pending Medium-Term Revenue Mobilization Strategy (MTRS) … will create fiscal space for Benin’s large development needs over time and help preserve debt sustainability.”",
    "“The recently established social registry is much-needed to channel timely support to vulnerable households in a world more prone to shocks. Its swift full operationalization is critical to improve the targeting and efficiency of social programs as their coverage expands.”",
    "[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)",
    "[Benin and the IMF](http://www.imf.org/external/country/BEN/index.htm)",
    "[Burkina Faso and the IMF](http://www.imf.org/external/country/BFA/index.htm)",
    "[Côte d'Ivoire and the IMF](http://www.imf.org/external/country/CIV/index.htm)",
    "[Mali and the IMF](http://www.imf.org/external/country/MLI/index.htm)",
    "[Niger and the IMF](http://www.imf.org/external/country/NER/index.htm)",
    "[Senegal and the IMF](http://www.imf.org/external/country/SEN/index.htm)",
    "[Togo and the IMF](http://www.imf.org/external/country/TGO/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[PR 22/252](https://www.imf.org/en/News/Articles/2022/07/08/pr22252-benin-imf-executive-board-approves-usd638m-eff-ecf-concludes-2022-article-iv-consultation)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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