The International Monetary Fund has announced its recommendation for USD$150.4 million in funds to boost economic growth in Benin.
An IMF team spent a week in Cotonou at the request of Benin’s government and completed their mission on Wednesday While there, IFM representatives led by Norbert Toé met with President Patrice Talon, Minister of Economy and Finance Romuald Wadagni, and other senior officials. They also met with Benin’s international development partners and the banking and business communities.
The meetings finalized a proposal for a special Extended Credit Facility (ECF) agreement available to low income countries, currently with zero-interest financing. The funds are extended on a case-by-case basis to help stabilize economies and reduce poverty. In Benin, it will support a three-year economic program.
That time window aligns within a five-year plan that targets improvements in government efficiency and taxation, invests in sustainability, infrastructure and social spending, and supports the business sector.
“The IMF resources will help the country address its balance of payment need and also catalyze significant support from development partners that would preserve debt sustainability,” the IMF said in a statement.
For its part, Benin commits to improving public investment management and partnership with the private sector, while working closely with technical and financial partners, the IMF said.
The agreement requires approval from the IMF Executive Board, which is expected in March or April.