IMF executive board approves $638 million for Benin


DAKAR (Reuters) – The International Monetary Fund’s (IMF) executive board has permitted a $638 million prolonged fund and prolonged credit score facility for Benin underneath a 42-month association to assist the West African nation tackle urgent financing wants, the IMF mentioned in a press release late on Friday.

The determination will allow a right away disbursement of $143 million, which Benin authorities intend to make use of for finances help, the IMF mentioned.

Like different international locations within the area, Benin’s financial system has been battered by world shocks together with the coronavirus pandemic, the conflict in Ukraine, and growing assaults by Islamist militants within the north of the nation.

“Benin faces vital headwinds from a deteriorating safety state of affairs at its northern border, COVID-19-induced scars, the conflict in Ukraine, in addition to vital local weather dangers, which may erode hard-won financial good points lately,” the IMF mentioned.

“The programme is calibrated flexibly to accommodate giant spending wants within the close to time period; it then pivots to revenue-based fiscal consolidation beginning in 2023 to make sure medium-term debt sustainability,” it added.

(Reporting by Bate Felix; Editing by Alison Williams and Alex Richardson)

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