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IMF approves US$22.58 million disbursement for Benin

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Porto-Novo, Benin, December 2 (Infosplusgabon) -  The Executive Board of the International Monetary Fund (IMF) on Friday completed Benin’s first review of the arrangement under the Extended Credit Facility (ECF), enabling the disbursement of US$ 22.58 million to the West African country.

According to the Board’s statement,  the approval brings total disbursements to Benin under the arrangement to about US$ 45.16 million. In addition, the Board approved Benin’s request to set programme conditionality for 2018, and to modify the end-December 2017 performance criteria.

 

Benin’s three-year arrangement for US$ 158.1million was approved on 7 April, 2017. It aims at supporting the country’s economic and financial reform programme and focuses on raising living standards and preserving macroeconomic stability.

 

“The Benin authorities have been steadfast in implementing their ECF-supported programme. A stable macroeconomic environment was maintained in 2016, despite negative regional spillovers,” remarked IMF Deputy Managing Director and Acting Chair, Mr. Mitsuhiro Furusawa.

 

“Continued implementation of the right mix of macroeconomic and structural policies is needed to preserve hard-won gains, address financial sector vulnerabilities, and contribute to meeting the regional fiscal convergence criteria.

 

“With poverty remaining a major challenge, accelerating spending on priority sectors and protecting the poorest segment of the population will be important,” Mr. Furusawa said.

 

Benin’s authorities aim to further bolster domestic revenue mobilization and adhere to the programmed fiscal consolidation path, including by broadening the tax base and increasing the efficiency of public investment.

 

They also intend to maintain prudent debt management practices to smooth the long-term debt service profile and safeguard Benin’s classification as a country with a moderate risk of debt distress, according to the IMF.

 

Mr. Furusawa called for close monitoring of the debt of state-owned enterprises, stating that it is key to better assess contingent liabilities and preserve public debt sustainability.

 

Regarding the financial sector, the IMF deputy chief stated that accelerating the implementation of the new harmonized regional resolution framework and strengthening the supervisory body for microfinance institutions, as well as addressing the high level of nonperforming loans in the banking sector, are essential to minimize financial sector vulnerabilities.

 

“Sustained efforts are needed to improve the business environment and foster greater private sector participation in the economy, including removing bottlenecks to private-sector development and leveling the playing field for all investors. Greater efforts are also needed to strengthen governance and transparency.”  Mr Furusawa added.

 

 

FIN/INFOSPLUSGABON/JKM/GABON 2017

 

 

 

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