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Benin: The debt ratio is moderate according to Arsène Dansou, DG of the CAA

03/06/2021
Source : ORISHAS FINANCE
Categories: Rate

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In an interview with the Financial Afrik website, the Managing Director of the Caisse Autonome d'Amortissement (CAA) Arsène Dansou revealed that the debt ratio in Benin remains moderate, contrary to what certain opinions say. "The debt ratio public sector in Benin increased from 30.90% in 2015 to 46.14% in 2020, i.e. a moderate increase over the period 2015-2020.

The outstanding public debt shows an average increase of less than 15% over the same period” declared Arsène Dansou. It compares this debt ratio to that of the WAEMU zone, where the average stands at 53.24% in 2020 according to the IMF's regional economic outlook published in April 2021. In short, Benin's debt is moderate.
According to Arsène Dansou, it is necessary to question the evolution of repayments made periodically on the stock of debt instead of remaining frozen on the evolution of the debt ratio. To this end, he informs that Benin has “repaid an average of 6.4% (of its debt) per year. This demonstrates the vitality of the economy and the credibility that Benin enjoys with investors.

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