[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111160-en":3,"doc-seo-111160-105":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},111160,962075006959,"Anda","https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297",8,"Research & Report","Benin - Joint World Bank-IMF Debt Sustainability Analysis - Moderate Risk Summary","Benin’s overall and external public debt is assessed as moderate risk of debt distress, unchanged since the June 2024 DSA. Under the baseline scenario, external debt burden indicators stay below high-risk thresholds, except a temporary breach in the debt service-to-revenue ratio after 2024Q1 Liability Management Operations. Stress tests show breaches for export and market financing shocks, reflecting vulnerability to revenue underperformance and shifts in market sentiment. A strategy emphasizing concessional borrowing, active debt management, and a revised medium-term plan to rebalance toward more domestic debt is recommended to reduce 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 remains at moderate risk of debt distress, unchanged from the previous DSA (June 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 ratio that occurred following a Liability Management Operations (LMO) completed in 2024Q1, using a third of the proceeds of 2024 Eurobond. While the Eurobond’s proceeds are largely substituting for costlier domestic financing, additional external debt has further limited the space to absorb shocks. External debt burden indicators 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. Alongside sustained revenue mobilization efforts, a borrowing strategy that continues to prioritize concessional terms, active debt management, and an updated medium-term debt strategy that rebalances 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 2.98 Composite Indicator, which is based on the April 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 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.","cbCaidUSTgE3w3B5","https://ap.wps.com/l/cbCaidUSTgE3w3B5","pdf",2304452,1,27,"English","en",105,"# Risk of debt distress assessment\n## Baseline indicators and temporary breach\n## Stress tests and key vulnerabilities\n## Recommended borrowing and debt management strategy","[{\"question\":\"What is Benin’s overall risk rating of debt distress?\",\"answer\":\"Benin’s overall and external public debt risk of debt distress is rated as moderate.\"},{\"question\":\"Why did the debt service-to-revenue ratio temporarily breach high-risk thresholds?\",\"answer\":\"The breach occurred after 2024Q1 Liability Management Operations using a third of the proceeds from a 2024 Eurobond, alongside additional external debt that reduced buffers.\"},{\"question\":\"Which stress tests show breaches of high-risk thresholds?\",\"answer\":\"Selected stress tests—especially for export and market financing shocks—breach high-risk thresholds, highlighting exposure to financing and revenue dynamics.\"}]",1784488887,68,{"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-world-bank-imf-debt-sustainability-analysis-moderate-risk-summary","",{"@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-world-bank-imf-debt-sustainability-analysis-moderate-risk-summary/111160/",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 is Benin’s overall risk rating of debt distress?","Question",{"text":74,"@type":75},"Benin’s overall and external public debt risk of debt distress is rated as moderate.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Why did the debt service-to-revenue ratio temporarily breach high-risk thresholds?",{"text":79,"@type":75},"The breach occurred after 2024Q1 Liability Management Operations using a third of the proceeds from a 2024 Eurobond, alongside additional external debt that reduced buffers.",{"name":81,"@type":72,"acceptedAnswer":82},"Which stress tests show breaches of high-risk thresholds?",{"text":83,"@type":75},"Selected stress tests—especially for export and market financing shocks—breach high-risk thresholds, highlighting exposure to financing and revenue dynamics.","https://schema.org",{"og:url":51,"og:type":86,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":88,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":91},[92,96,100,104,109,114,119,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":93,"show_sort_weight":94,"slug":95},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":97,"show_sort_weight":98,"slug":99},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":101,"show_sort_weight":102,"slug":103},"Exam",70,"exam",{"id":105,"doc_module":4,"doc_module_name":45,"category_name":106,"show_sort_weight":107,"slug":108},5,"Comic",60,"comic",{"id":110,"doc_module":4,"doc_module_name":45,"category_name":111,"show_sort_weight":112,"slug":113},6,"Technology",50,"technology",{"id":115,"doc_module":4,"doc_module_name":45,"category_name":116,"show_sort_weight":117,"slug":118},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":120,"slug":121},30,"research-report",{"id":123,"doc_module":4,"doc_module_name":45,"category_name":124,"show_sort_weight":125,"slug":126},9,"Religion & Spirituality",20,"religion-spirituality",{"id":125,"doc_module":4,"doc_module_name":45,"category_name":128,"show_sort_weight":125,"slug":129},"World Cup","world-cup",{"id":131,"doc_module":4,"doc_module_name":45,"category_name":132,"show_sort_weight":131,"slug":133},10,"Lifestyle","lifestyle",{"id":135,"doc_module":4,"doc_module_name":45,"category_name":136,"show_sort_weight":105,"slug":137},19,"General","general"]