Benin: Third Review under the Extended Fund Facility and the Extended Credit Facility Arrangements and Request for an Arrangement under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director

The IMF Executive Board approved in July 2022, 42-month Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements (391 percent of quota; about US$650 million) to help Benin meet pressing financing needs and support the country’s National Development Plan centered on achieving the Sustainable Development Goals (SDGs). Program implementation remains strong, with additional (concessional) budget support from donors and new SDG financing complementing front-loaded Fund support beyond expectations. After strong momentum over the last several quarters, the Beninese economy faces headwinds from Niger border closure amidst regional sanctions following a coup in that country and post-electoral policy shifts in Nigeria, compounding preexisting challenges, including climate-related vulnerabilities and regional security risks. The authorities remain committed to reform notwithstanding those challenges. They have requested Fund support under the Resilience and Sustainability Facility (RSF) to support their ambitious climate agenda, thereby complementing the EFF/ECF in improving socioeconomic resilience.