{
  "title": "BENIN: IMF Reaches Staff-Level Agreement on Fifth Review of Extended Fund and Extended Credit Facilities and the Second Review of Resilience and Sustainability Facility",
  "publication": "IMF News, October 17, 2024",
  "sourceUrl": "https://www.imf.org/en/news/articles/2024/10/17/pr24377-benin-imf-reaches-sla-5th-rev-eff-ecf-2nd-rev-rsf",
  "canonical": "https://www.imf.org/en/news/articles/2024/10/17/pr24377-benin-imf-reaches-sla-5th-rev-eff-ecf-2nd-rev-rsf",
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  "summary": "IMF has reached staff-level agreement with Benin on the Fifth Review of Benin’s EFF/ECF and the Second Review of the Resilience and Sustainability Facility (RSF).",
  "publishDate": "2024-10-17",
  "sections": [
    {
      "heading": "Mission outcome",
      "content": "- IMF staff and Beninese authorities reached a staff-level agreement to complete the Fifth Review of Benin’s 42-month blended EFF/ECF and the Second Review of the RSF.\n- Subject to approval by the IMF Executive Board, Benin will receive:\n  - a disbursement of SDR 31.2 million (about $42 million) under the ECF and EFF arrangements; and\n  - up to SDR 39.6 million (about $53 million) under the RSF arrangement.\n- These disbursements would bring the total disbursement under the EFF/ECF to SDR 431 million (about $576 million)."
    },
    {
      "heading": "Economic outlook and performance",
      "content": "- Economic activity is estimated to have expanded by 6.5 percent year-over-year in the first half of this year.\n- Growth is expected to remain strong in the near-term.\n- Program performance:\n  - All quantitative targets for end-June 2024 were met.\n  - Fiscal consolidation is reported as well underway, supported by robust tax collection.\n- Balance of payments:\n  - The balance of payments has deteriorated temporarily due to large investments, including related to the special economic zone (SEZ).\n  - Recovery is expected to be gradual as transformation of local commodities at the SEZ boosts exports."
    },
    {
      "heading": "Fiscal policy and social spending",
      "content": "- The authorities submitted to Parliament the draft 2025 budget targeting compliance with the WAEMU overall deficit norm of 3 percent of GDP.\n- Fiscal consolidation approach:\n  - Set to be revenue-based (drawing on the Medium-Term Revenue Strategy).\n  - Significant increases planned in social spending (education, health, and social protection).\n- Social protection targeting:\n  - Recommendation to update regularly and fully operationalize the social registry to improve targeting of expanded social assistance programs."
    },
    {
      "heading": "Structural reforms, governance, and safeguards",
      "content": "- Anti-corruption:\n  - Mission discussed next steps to strengthen Benin’s anti-corruption framework, complementing the recently operationalized anti-corruption agency.\n- Safeguarding macroeconomic gains:\n  - Discussion on mechanisms to safeguard macroeconomic gains over the political cycle."
    },
    {
      "heading": "Climate finance, utilities, and fuel policy",
      "content": "- Climate finance:\n  - Authorities are advancing their climate finance agenda following the climate finance roundtable in Cotonou in July.\n  - Climate change has been mainstreamed in the draft 2025 budget.\n- Utilities and subsidies:\n  - Mission discussed next steps in advancing water tariff reform.\n  - Mission discussed fuel subsidy reform that accounts for the specificities of Benin’s local fuel market."
    },
    {
      "heading": "Stakeholder engagement and consultations",
      "content": "- The IMF team met with:\n  - Senior Minister of Economy and Finance Wadagni;\n  - Senior Minister of Development and Government Action Bio Tchane;\n  - National Director of the BCEAO Assilamehoo;\n  - Other senior government officials;\n  - Head of Opposition;\n  - Finance Commission of the National Assembly in Porto Novo;\n  - Civil society, university students, association of women entrepreneurs, and a farmers’ association;\n  - The donor community and other stakeholders.\n- Mission period and leadership:\n  - An IMF team led by Constant Lonkeng visited Cotonou during October 8–17, 2024.\n\nSource: IMF press release, October 17, 2024.\n\n---\n\n\n References\n\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- IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2024/10/17/pr24377-benin-imf-reaches-sla-5th-rev-eff-ecf-2nd-rev-rsf"
    }
  ],
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    "[Structured JSON version](/en/news/articles/2024/10/17/pr24377-benin-imf-reaches-sla-5th-rev-eff-ecf-2nd-rev-rsf/index.json)",
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    "Published: October 17, 2024",
    "IMF staff and Beninese authorities reached a staff-level agreement to complete the Fifth Review of Benin’s 42-month blended EFF/ECF and the Second Review of the RSF.",
    "Subject to approval by the IMF Executive Board, Benin will receive:",
    "These disbursements would bring the total disbursement under the EFF/ECF to SDR 431 million (about $576 million).",
    "Economic activity is estimated to have expanded by 6.5 percent year-over-year in the first half of this year.",
    "Growth is expected to remain strong in the near-term.",
    "Program performance:",
    "Balance of payments:",
    "The authorities submitted to Parliament the draft 2025 budget targeting compliance with the WAEMU overall deficit norm of 3 percent of GDP.",
    "Fiscal consolidation approach:",
    "Social protection targeting:",
    "Anti-corruption:",
    "Safeguarding macroeconomic gains:",
    "Climate finance:",
    "Utilities and subsidies:",
    "The IMF team met with:",
    "Mission period and leadership:",
    "[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)",
    "[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)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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