The International Monetary Fund’s executive board announced on Wednesday that it has finished the first review of a 42-month financing program for Benin, granting the country access to around $144 million right now.
The global lender stated in a statement that “the initiative is off to a solid start, with all end-June 2022 performance criteria and indicative targets met and all structural benchmarks implemented.”
The board’s move brings total disbursements under the blended Extended Fund Facility and Extended Credit Facility arrangements approved in July to about $287 million.
The IMF said Benin’s economy was gaining strength despite heightened global uncertainty and increasing regional security risks, with economic output to grow by 6% this year.
High fuel and food prices, and the strong U.S. dollar, are expected to widen the country’s current account deficit to 6.1% of gross domestic product, the IMF said. It noted that inflation had remained subdued given a strong harvest season and subsidy measures adopted after Russia’s invasion of Ukraine on Feb. 24.