Covid-19 has had a significant impact on the Beninese economy, whose growth is expected to drop drastically to 2% this year against nearly 7% in 2019. To accelerate the recovery, the IMF has been supporting the country for several months, thanks to emergency funding.

Benin will benefit from financing of $177.9 billion from the International Monetary Fund ( IMF ) . This was announced by the institution in a press release published on Monday, December 21, 2020.

The funds consist of a disbursement of $118.6 million under the rapid financing instrument (RFI) and another of $59.3 million under the rapid credit facility (RCF). They are intended to help the country better cope with the covid-19 pandemic, by responding to urgent fiscal and balance of payments needs arising from measures to combat the virus.

This is the second emergency disbursement made by the IMF since the start of the pandemic which officially affected 3167 people for 44 deaths and 3061 recoveries. Last May, the institution had already granted the West African country an increase in the financing it was to receive under a three-year Extended Credit Facility (ECF) agreement.

The IMF Executive Board today approved US$177.96 million to help #Benin address the economic impact of the #COVID19 crisis. https://t.co/rpzz4h4mgo #IMFAfrica pic.twitter.com/3po2w5AuWj

— IMF (@IMFNews) December 21, 2020

“Benin's macroeconomic outlook has deteriorated further since the completion in May 2020 of the sixth and final review under the ECF-supported arrangement. Economic growth is expected to slow to 2% in 2020 from nearly 7% in 2019 […] While Benin's response to the pandemic has been effective in curbing the spread of covid-19, the economic shock has created fiscal pressures and urgent balance of payments needs,” the IMF experts said in their statement.

“Once conditions permit, the authorities are committed to returning to their medium-term fiscal path, keeping the fiscal deficit below the regional ceiling. Raising domestic revenues towards the regional target should remain a primary fiscal objective, as this would strengthen debt sustainability […], and allow Benin to finance its medium-term economic development plan and reduce poverty,” they add.

It should be noted that this new disbursement brings to $281.26 million, the total amount of aid granted by the IMF to Benin, in the form of a loan, to fight against the pandemic.