Public Management

IMF supports Benin’s Covid-19 response plan with $178mln

IMF supports Benin’s Covid-19 response plan with $178mln
Tuesday, 22 December 2020 17:50

The International Monetary Fund announced yesterday it has approved $177.9 million to help Benin strengthen its response plan against the coronavirus pandemic.

The money includes $118.6 million granted under the Rapid Financing Instrument (RFI) and $59.3 million under the Rapid Credit Facility (RCF). It will be used to meet the country’s urgent budget and balance of payment needs induced by the anti-Covid-19 measures.

This is the second emergency disbursement approved by the Fund since the outbreak of the pandemic. Last May, IMF granted the West African country an increase in the financing it was to receive under a three-year extended credit facility (ECF) agreement.

“Benin’s macroeconomic outlook has further deteriorated since the completion, in May 2020, of the sixth and final review under the ECF-supported arrangement. Economic growth is projected to decelerate to 2 percent in 2020, from nearly 7 percent in 2019 […] While Benin’s pandemic response has been effective in curbing the spread of the COVID-19, the economic shock has created urgent fiscal pressures and balance of payment needs,” the IMF statement read.

“Once conditions permit, the authorities are committed to reverting to their medium-term fiscal path, by maintaining the fiscal deficit below the regional ceiling. Raising domestic revenue closer to the regional target should remain a primary fiscal objective, as this would strengthen debt sustainability, ensure that the COVID-19 shock does not jeopardize fiscal sustainability, and allow Benin to finance its medium-term economic development plan and reduce poverty,” the statement said.

Let’s note that the new disbursement brings the total amount of loans granted by the IMF to Benin as part of the fight against the Covid-19 to $281.26 million. According to the latest official data, Benin has 3,167 cases of coronavirus with 44 deaths and 3,061 recoveries.

Moutiou Adjibi Nourou

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
• Bassirou Diomaye Faye denounces credit rating agencies’ methodologies as ill-suited to African contexts.• Senegal urges reforms to enable fairer...
(AfDB)-The Board of Directors of the African Development Bank Group has approved a $474.6 million loan for South Africa's Infrastructure Governance...
New card enables African payments without using US or European networks Aims to lower costs, protect financial data, and boost intra-African...
• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société Générale Burkina Faso (SGBF).•The move is part of...
Most Read
01

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
02

Lebara Group is now bringing its affordable and reliable mobile services to Africa, starting with Ni...

Telecoms: Lebara Enters Nigerian Market with Strong Competitive Ambitions
03

• Google unveils Veo 3, its latest AI tool for ultra-realistic video generation• Experts warn deepfa...

Deepfake Threat Becomes Alarming in Africa as AI Advances Faster Than Laws
04

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
05

• Gates Foundation commits $1.6 billion over five years to Gavi.• Bill Gates warns of rising ch...

Gates Foundation Pledges $1.6 Billion to Gavi to Boost Global Child Vaccination
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.