[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111598-en":3,"doc-seo-111598-105":29,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},111598,7971461740886,"Theodore","https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2",8,"Research & Report","Benin - Joint Bank-Fund Debt Sustainability Analysis - Moderate Risk Assessment","Benin faces a moderate risk of external and overall debt distress, with the assessment unchanged from the previous DSA (January 2024). Under the baseline scenario, external debt burden indicators stay below high-risk thresholds, except for a temporary 2024 breach of the debt service-to-revenue ratio linked to Liability Management Operations and constrained shock-absorbing space after a recent Eurobond. Additional stress tests breach high-risk thresholds, especially under export and market financing shocks. Strengthening revenue mobilization, maintaining prudent, concessional borrowing, and advancing active debt management while integrating climate change into policymaking are key mitigations.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nManuela Francisco and Abebe Adugna (IDA) and Annalisa Fedelino and Geremia Palomba (IMF) .  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) .  \n\n| BENIN: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS |  |\n| --- | --- |\n| Risk of external debt distress | Moderate |\n| Overall risk of debt distress | Moderate |\n| Granularity in the risk rating | Limited space to absorb shocks |\n| Application of judgment | No |\n\nBenin remains at moderate risk of external and overall debt distress, unchanged from the previous DSA (January 2024) . All projected external debt burden indicators remain below high-risk thresholds under the baseline scenario, apart from a temporary breach to the debt service-to-revenue ratio in 2024 due to Liability Management Operations (LMO) . Despite the unchanged assessment, the recent Eurobond—partly substituting for costlier domestic financing in a context of tighter conditions on the regional security market—has further limited the space to absorb shocks. External debt burden indicators also breach high-risk thresholds in selected stress tests, particularly for export, and market financing shocks. High debt service-to-revenue ratio leaves debt vulnerable to revenue underperformance or shifts in market sentiment that could increase rollover costs.  \nSustained revenue mobilization efforts, along with continued prudent borrowing that prioritizes concessional terms, active debt management strategy and mainstreaming climate change into policymaking, would mitigate the risk of debt distress. In seeking the most cost-effective financing options, the authorities should also ensure that the financing mix does not leave debt overly exposed to external risk.  \n1. This Debt Sustainability Analysis (DSA) covers central government and central bank debt as well as guarantees provided by the central government (Text Table 1) .1 Central bank debt borrowed on behalf of the government (i.e. , debt to the IMF) is included as external debt. External debt is defined on a currency basis owing to data limitations, except for debt from the regional development bank (BOAD), which is included as external debt for the purpose of the DSA.  \n\n|  |\n| --- |\n| 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 Subsectors of the public sector Sub-sectors covered Central government\u003Cbr>State and local government\u003Cbr>Other elements in the general government\u003Cbr>o/w: Social security fund\u003Cbr>o/w: Extra budgetary funds (EBFs)\u003Cbr>Guarantees (to other entities in the public and private sector, including to SOEs) Central bank (borrowed on behalf of the government)\u003Cbr>Non-guaranteed SOE debt X\u003Cbr>X\u003Cbr>X\u003Cbr> |\n|  |\n\n2. Debt coverage remains fairly comprehensive but does not include non-guaranteed SOE debt and the non-financial debts of other government entities.2 Benin received a high score for sectoral coverage on the IDA Debt Reporting heat map for 2023. Although public debt does not include non-guaranteed SOE debt, the authorities have published information on the outstanding stock of nonguaranteed SOE debt (comprising 15 SOEs), which stood at 2.8 percent of GDP at end-2023 . They also included details on on-lending to SOEs in quarterly debt bulletins in 2023 , as part of IDA’s Sustainable Development Finance Policy (SDFP) and most recent Development Policy Operations. Also, under the SDFP, the Debt Management Office and the Directorate in charge of SOEs (General Directorate of State Participations and Denationalization , DGPED) established a monitoring system following the adoption by ministerial order of a risk-based framework for granting SOE guarantees. The authorities also published details on the non-financial debt held by local governments, including communes (e.g. , supplier credit or debt to the central government), which was estimated 0.3 ppt of GDP at end-2021 . These entities have not contracted financial debt and cannot do so","cbCaiqyMkef8qHS1","https://ap.wps.com/l/cbCaiqyMkef8qHS1","pdf",1210320,1,26,"English","en",105,"# Risk Assessment\n## External and overall debt distress\n## Key breaches and stress-test results\n# Coverage and methodology\n## Debt scope and included liabilities\n## Gaps and planned improvements","[{\"question\":\"What is Benin’s overall risk of debt distress according to this DSA?\",\"answer\":\"Benin’s overall risk of debt distress is moderate for both external and overall debt, unchanged from the previous DSA (January 2024).\"},{\"question\":\"Which indicator breaches the high-risk threshold, and why in 2024?\",\"answer\":\"The debt service-to-revenue ratio temporarily breaches the high-risk threshold in 2024 due to Liability Management Operations (LMO).\"},{\"question\":\"What measures does the DSA recommend to mitigate debt distress risk?\",\"answer\":\"The report recommends sustained revenue mobilization, continued prudent borrowing with concessional terms, active debt management, and integrating climate change into policymaking, while ensuring the financing mix does not overly expose debt to external risk.\"}]",1784490856,66,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":27},"benin-joint-bank-fund-debt-sustainability-analysis-moderate-risk-assessment","",{"@graph":35,"@context":85},[36,53,68],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/benin-joint-bank-fund-debt-sustainability-analysis-moderate-risk-assessment/111598/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-20","2026-07-19",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What is Benin’s overall risk of debt distress according to this DSA?","Question",{"text":75,"@type":76},"Benin’s overall risk of debt distress is moderate for both external and overall debt, unchanged from the previous DSA (January 2024).","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"Which indicator breaches the high-risk threshold, and why in 2024?",{"text":80,"@type":76},"The debt service-to-revenue ratio temporarily breaches the high-risk threshold in 2024 due to Liability Management Operations (LMO).",{"name":82,"@type":73,"acceptedAnswer":83},"What measures does the DSA recommend to mitigate debt distress risk?",{"text":84,"@type":76},"The report recommends sustained revenue mobilization, continued prudent borrowing with concessional terms, active debt management, and integrating climate change into policymaking, while ensuring the financing mix does not overly expose debt to external 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