## IMF Executive Board Approves US$200 million under the Resilience and Sustainability Facility for Benin and Completes Third Review of Extended Fund Facility and Extended Credit Facility

_IMF News, December 14, 2023_

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## Bibliographic details
- Published: December 14, 2023

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### Program approvals and disbursements
- Approved a new two-year arrangement under the Resilience and Sustainability Facility (RSF) in the amount of SDR 148.56 million (about $US200 million, 120 percent of quota); disbursements to start when the First Review of the arrangement is completed.
- Completed the Third Review under the 42-month blended EFF/ECF arrangement (approved on July 8, 2022), allowing immediate disbursement of SDR 101.58 million (about US$136 million) toward budget support.
- Total disbursement under the program now amounts to SDR 369 million (about US$494 million).

### Program performance and implementation
- Program performance remains strong, with all end-June 2023 quantitative targets met and structural benchmarks implemented.
- Robust tax collection is supporting fiscal consolidation and complementing stepped-up budget support from Benin’s development partners and frontloaded Fund disbursements under the EFF/ECF.
- The Medium-Term Revenue Strategy (MTRS) has been recently adopted; it is aimed at improving the efficiency of the tax system and expanding the tax base.

### Economic context and risks
- Authorities are navigating headwinds from the Niger border closure, regional sanctions on that country, and the phasing-out of fuel subsidies in Nigeria.
- Remaining vigilant regarding the financial and socio-economic fallout from these shocks is emphasized to preserve macroeconomic stability.
- Contingency planning is stressed given heightened uncertainty; authorities should maintain flexibility in budget execution, including a phased approach to public investment.
- Remaining vigilant vis-à-vis financial sector risks and promoting financial inclusion are highlighted as important to support sustainable growth.

### RSF objectives and complementarities
- The RSF will support the authorities’ goal to mainstream climate considerations in policymaking, mitigate transition risks through a comprehensive fuel subsidy reform, and catalyze other sources of climate financing.
- RSF reform measures build on the authorities’ national adaptation plan and existing diagnostics, including the IMF’s Climate Public Investment Assessment (C-PIMA), the World Bank’s Country Climate and Development Report (CCDR), and leverage the Global Center on Adaptation’s expertise.
- Steadfast implementation of the authorities’ climate change agenda under the RSF is intended to complement the EFF/ECF in supporting overall socio-economic resilience, address structural challenges that expose Benin to climate shocks, help mitigate balance of payment risks, and catalyze other sources of climate financing.

### Policy recommendations and priorities
- Continue fiscal consolidation toward converging to the West-African Economic and Monetary Union-wide fiscal deficit norm of 3 percent of GDP by 2025, in line with the program’s debt sustainability objectives.
- Sustain and deepen implementation of the Medium-Term Revenue Strategy (MTRS) to sustain ongoing revenue collection efforts and help meet Benin’s large development needs over time.
- Accelerate operationalization of the social registry to facilitate targeting as social programs are scaled up, and to help compensate vulnerable households during the fiscal adjustment process.
- Sustain reforms to enhance the rule of law and the anticorruption framework to solidify institutional foundations for private sector-led growth that benefits all Beninese.

*Press Release No. 23/452, December 14, 2023.*

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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/)
- [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)
- [Nigeria and the IMF](http://www.imf.org/external/country/NGA/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)
- [IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)
- [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [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)

_Source: https://www.imf.org/en/news/articles/2023/12/14/pr23452-benin-imf-exec-board-approves-us200m-rsf-completes-3rd-rev-eff-ecf_