Press Releases
| Pages | 29 |
Page 29
The IMF has approved the second annual loan for Benin under the Enhanced Structural Adjustment Facility (ESAF), in an amount equivalent to SDR 9.1 million (about $13 million) in support of the government's economic and financial program for 1998-99. The loan is available in three installments, the first of which will be available on January 15, 1999.
To consolidate the progress made over the past few years, the government intends to rigorously implement economic and structural reforms and make up for recent delays. The mediumterm strategy for 1998-2001 aims at further reducing financial imbalances, keeping the economy on the path of sustained growth and job creation, and diversifying the productive base. The principal objectives are to achieve an average real GDP growth of 5.5 percent a year, keep inflation below 3 percent, and reduce the external current account deficit to levels that can be covered without recourse to exceptional financing.
In order to achieve this medium-term strategy, the authorities' economic and financial program for 1998-99 is designed to promote access to basic public services by improving public resource management and to increase government saving so as to reduce the share of investment financed by external resources.
To revitalize public administration and strengthen civil service management the government will implement civil service reform. To increase foreign and private domestic investment, the government is determined to broaden the divestiture program,including the restructuring and privatization of a number of public enterprises and the liberalization of the telecommunications utilities and cotton sectors.The government will provide an improved regulatory framework to promote sound and sustainable development of the private sector.
A priority of the government will be to cushion the impact of the adjustment policy on the most vulnerable groups of the population by improving access to essential services and continuing the implementation of its strategy for addressing social dimensions of development.
Benin joined the IMF on July 10, 1963. Its quota is SDR 45.3 million (about $64 million), and its outstanding use of IMF...
To continue reading
Request your trial