Beninese authorities and International Monetary Fund (IMF) team reached preliminary agreement on third review under Extended Financing Facility (ECF) program, announces press release on IMF website ‘organization.
“The results achieved under the ECF-supported program remain satisfactory. On the basis of available data, all the program monitoring indicators (quantitative and structural) defined for the end of June 2018 have been globally achieved, “says the team led by Luc Eyraud from 18 to 29 October 2018 in Cotonou.
According to the statement, discussions focused on the 2019 draft budget, recent economic and financial developments and the policies needed to foster inclusive growth, preserve debt sustainability, improve governance and promote financial stability.
In particular, the Benin authorities and the IMF mission agreed on fiscal policy measures in the 2019 Finance Law in order to achieve the program’s key objectives. These measures, according to the IMF, are expected to reduce the budget deficit to 2.7% of GDP in 2019 and thus meet the WAEMU regional deficit standard.
Benin’s triennial program had been approved by the IMF’s Executive Board in April 2017 for about $ 152 million. It aims, in particular, to meet the country’s long-term financing needs for the country’s balance of payments, as well as the reduction of barriers to inclusive growth and poverty reduction.
