An IMF mission stayed in Benin for 15 days to assess the Economic and Financial Program and the Extended Credit Facility, an agreement concluded with Benin in July 2022 for an amount of 396 billion FCFA for a period of 42 months in instead of the usual 36. This was the second review of the program, all the boxes have been checked, which validates the second disbursement.
From our correspondent in Cotonou,
The mission ended on April 5 with the conclusions presented here by the head of mission, the Cameroonian Constant Lonkeng: « All program criteria were met in an exemplary fashion with additional margins. There will be a disbursement of $68 million going to the state budget, which will bring the disbursement to $360 million, more than half of the overall envelope. This is unprecedented, generally disbursements are gradual, it is a mark of confidence that the IMF has in the government of Benin ».
Several monitoring indicators were assessed: IMF experts looked at the primary balance, domestic debt payment arrears, priority social spending and the debt level. On the debt, the opposition and the people of Benin have often accused Patrice Talon and his Minister of Finance of heavily indebting the country. The IMF assessment is as follows: 40% of sub-Saharan African countries are at a high debt risk level. Benin is at moderate debt risk. The indebtedness in the program will be maintained at this level ».
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The Fund is complimentary regarding Benin’s economic governance. The 2022 growth rate exceeded forecasts of 6% and reached 6.3%, a figure communicated by the Ministry of Finance. ” Today, the macro-economic framework is healthy, the debt level is reasonable, the risk is moderate with the results which say that the program we have with the IMF is well maintained, the economy is solid and that all the criteria are met, decipher the ministerRomuald Wadagni. We can tell people that their property is well guarded, well managed, well maintained. The Beninese economy is in a position to pursue the creation of more wealth, more well-being, for more Beninese in a sustainable way. »
The money is lent to Benin at a concessional rate that varies between 0 and 1% and will be used to finance the current year’s budget, according to Minister of State Wadagni. Next review of the program, it will be in six months according to forecasts, it will be the third.
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