[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111541-en":3,"doc-seo-111541-105":29,"detail-sidebar-cat-0-en-105":90},{"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":4,"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},111541,8796095461610,"Oliver","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","Benin - Joint Bank-Fund Debt Sustainability Analysis","Benin’s joint World Bank-IMF Debt Sustainability Analysis assesses central government and central bank debt, including central government guarantees, and evaluates risks of external and overall debt distress under baseline and stress scenarios. External debt distress risk remains moderate, with projected external burden indicators staying below high-risk thresholds except for a temporary breach in 2025 linked to a Eurobond maturity and associated debt management operations. Limited shock absorption and high debt-service-to-revenue sensitivity raise vulnerability, while proactive debt management and revenue mobilization reduce overall risk.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nManuela Francisco and Abebe Adugna (IDA), and Annalisa Fedelino and Niamh Sheridan (IMF)  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) 1  \n\n| BENIN: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS |  |\n| --- | --- |\n| Risk of external debt distress | Moderate2 |\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’s overall and external public debt remain at moderate risk of debt distress, unchanged from the previous DSA (December 2024) . All projected external debt burden indicators remain below high-risk thresholds under the baseline scenario, except for a temporary breach to the debt service-to-revenue and debt service-to-exports ratios in 2025 due to a debt management operation (DMO) for a Eurobond maturing in 2032. In 2025, Benin issued a new Eurobond for budget financing and contracted a commercial loan with a World Bank’s Policy-Based Guarantee (PBG) for a domestic and external debt DMO. Space to absorb shocks is limited, but proactive debt management allowed accommodating additional external borrowing. External debt burden indicators breach high-risk thresholds in selected stress tests, particularly for export and depreciation shocks. High debt service-to-revenue ratio leaves debt vulnerable to revenue underperformance or shifts in market sentiment that could increase rollover costs. Continued revenue mobilization efforts, a borrowing strategy that prioritizes concessional terms, active debt management, and a commitment torebalance the debt portfolio towards more domestic debt would reduce the risk of debt distress.  \n1 Prepared by the IMF and the World Bank. This DSA follows the Guidance Note of the Join Bank-Fund Debt Sustainability Framework for Low Income Countries , February 2018.  \n2 Benin retains a medium-rated debt-carrying capacity, given the 3.05 Composite Indicator, which is based on the October 2024 WEO and the 2022 CPIA.  \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) 3. 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 |  |  |\n|  |  | \u003Cbr>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 |  |\n|  |  |  |  |  |\n\n2. Debt coverage remains comprehensive but does not include non-guaranteed SOE debt and the non-financial debts of other government entities.4 Benin received a high score for sectoral coverage on the IDA Debt Reporting heat map for 2023. Although public debt does not include nonguaranteed SOE debt, the authorities have published information on the outstanding stock of nonguaranteed SOE debt (comprising 9 SOEs), which stood at 2.3 percent of GDP at end-2024 . They also included details on on-lending to SOEs in quarterly debt bulletins in 2024 , as part of IDA’s Sustainable Development Finance Policy (SDFP) and most recent Development Policy Operations. 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 or","cbCaisO5sCc1mCRf","https://ap.wps.com/l/cbCaisO5sCc1mCRf","pdf",1218990,1,27,"English","en",105,"# Risk assessment\n## External debt distress and overall risk\n## Stress tests and breach episodes\n# Coverage and methodology\n## Debt definitions and scope\n## Sectoral coverage and data limits\n# Policy implications","[{\"question\":\"What is Benin’s overall and external debt distress risk level?\",\"answer\":\"Benin’s overall and external public debt distress risk remains at a moderate level.\"},{\"question\":\"Why do external debt burden indicators breach high-risk thresholds in 2025?\",\"answer\":\"The breach is temporary in 2025 due to debt management operations, including a Eurobond maturing in 2032 and related financing and guarantee arrangements.\"},{\"question\":\"What factors make Benin vulnerable despite moderate risk?\",\"answer\":\"Limited space to absorb shocks and a high external debt-service-to-revenue ratio make debt vulnerable to revenue underperformance or changes in market sentiment that can increase rollover costs.\"}]",1784490594,68,{"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":85,"head_meta":87,"extra_data":89,"updated_unix":27},"benin-joint-bank-fund-debt-sustainability-analysis","",{"@graph":35,"@context":84},[36,53,67],{"@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/111541/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80],{"name":71,"@type":72,"acceptedAnswer":73},"What 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