- The IMF Executive Board today completed the seventh and final review of Benin's Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, and the fourth and final review under the Resilience and Sustainability Facility (RSF) arrangement. The decision allows for an immediate disbursement of about US$ 118 million (the equivalent of SDR 85.9 million).
- Benin's strong fiscal performance reduced its fiscal deficit to 3.1 percent of GDP in 2024. Domestic revenue mobilization has been sustained over the course of the program, while priority social spending has been preserved. The authorities' new budget aims to continue this progress and targets a deficit below 3 percent of GDP.
- Looking ahead, Benin will have to preserve the reform momentum gained over the past years and strengthen policies that foster inclusive growth and maintain debt sustainability.
Washington, DC – February 25, 2026: The Executive Board of the International Monetary Fund (IMF) has completed the seventh review under the blended Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, and the fourth review under the Resilience and Sustainability Facility (RSF) arrangement. The EFF/ECF arrangements were approved by the IMF Executive Board in July 2022 (see PR 22/252 ) and complemented by the RSF arrangement in December 2023 (see PR 23/452 ).
The completion of the reviews allows for the immediate disbursement of about US$ 36.3 million (the equivalent of SDR 26.5 million) under the EFF/ECF—bringing total disbursements under the EFF/ECF to about US$ 664.7 million (the equivalent of SDR 484 million)—and about US$ 81.6 million (the equivalent of SDR 59.4 million) under the RSF arrangement, bringing total disbursements under the RSF to about US$ 204 million (the equivalent of SDR 148.6 million).
Economic momentum in Benin is accelerating following a strong performance over the last five years. Growth is projected at 7.5 percent year-over-year in 2025, in line with 2024, and is expected to remain strong in the medium term. The current account deficit of the balance of payments narrowed in 2024, following a previous deterioration due to the large professional services imports related to the Glo-Djigbé Industrial Zone (GDIZ). It is expected to continue its gradual recovery, as exports from the special economic zones increase and the services deficit continues to moderate over time.
Consistent with international statistical standards, several external loans (which had been transferred to public and semi-public enterprises in 2021 and fully serviced by those entities) are now reclassified as central government debt. As a result, central government debt was revised up to 60.5 percent of GDP at end-2024, without affecting Benin's moderate risk of debt distress thanks to a stronger debt-carrying capacity.
Program performance under the EFF/ECF has been strong, with all end-June 2025 quantitative performance criteria and end-September 2025 indicative targets met and structural benchmarks implemented, albeit with a short delay for one benchmark. On the RSF front, the authorities completed the remaining six reform measures under the arrangement, making progress in enhancing climate-related public financial management, reforming water tariffs, rolling out an agricultural insurance scheme, strengthening social protection, and improving the climate-financial-information architecture.
Following the Executive Board discussion on Benin, Mr. Okamura, Deputy Managing Director, and acting chair, issued the following statement:
"Benin has completed its Fund-supported programs with a strong performance. The authorities' commitment to economic reform has yielded tangible dividends, with higher and more stable growth, favorable access to international markets, and continuous support from development partners. Going forward, the authorities must maintain fiscal discipline and the reform momentum and strengthen inclusive policies, while remaining vigilant of regional and global risks.
"Fiscal consolidation in 2024 reduced Benin's fiscal deficit to 3.1 percent of GDP. The 2026 budget aims to maintain the deficit within the West African Economic and Monetary Union (WAEMU) fiscal deficit ceiling of 3 percent of GDP. The fiscal adjustment remains anchored in the Medium-Term Revenue Strategy, through sustained tax revenue mobilization, and supported by a streamlining of expenditure.
"Rebalancing the debt portfolio toward domestic debt over time, as planned in the Medium-Term Debt Strategy, should remain a priority. While Benin remains at moderate risk of debt distress thanks to a stronger debt-carrying capacity, the recent upward revision of central government debt calls for greater vigilance. This, together with continued proactive debt management and enhanced monitoring of public enterprises' debt, will help mitigate external rollover risks.
"The authorities should continue strengthening fiscal transparency, including by publishing the recently revised debt and fiscal data in their regular statistical bulletins. Vigilance is also required to strengthen the governance and transparency of SOEs and public agencies given their growing footprint in the economy.
"Continued attention by supervisory authorities toward public and non-public financial sector institutions remains essential and will help safeguard financial stability and limit contingent liability risks.
"Further efforts are needed to encourage the formalization of the economy and support the development of small and medium enterprises. Updating the social registry and implementing the recommendations of the recently published mapping of social protection programs will improve the efficiency of social assistance initiatives toward vulnerable households.
"Under the Resilience and Sustainability Facility (RSF), the authorities have recently adopted new regulations for climate-related public financial management, improved the climate-financial-information architecture, reformed water tariffs, implemented an agricultural insurance scheme, and strengthened social protection. Going forward, the authorities should maintain the reform momentum to promote long-term balance of payments stability and further catalyze private-led climate finance."
