The International Monetary Fund (IMF), has reached what it termed as a staff-level agreement with Benin Republic on a new 42-month extended credit facility worth $658 million.

In a statement on Friday, the global bank said the extension is intended to help the impoverished West African country address its pressing financing needs related to security, the impact of the COVID-19 pandemic and the war in Ukraine, as well as anchor its national development plan.

“IMF staff and the Beninese authorities have reached agreement on an innovative program – first case under the IMF’s High Combined Credit Exposure (HCCE) policy – to support the economy in the near-term while advancing policies and reforms to foster sustained private sector led growth,” the statement said.

The agreement which is subject to approval by IMF Management and the Executive Board around mid-June 2022, will see Benin having access to borrow from the IMF on more liberal terms, according to the statement.

An IMF team led by Constant Lonkeng, held meetings with Beninese representatives in Cotonou during April 4–13 and in Washington D.C. during April 19–22 to negotiate a new program in support of the authorities’ ambitious policy plans and to conduct the 2022 Article IV consultation. The agreement is subject to approval by IMF Management and the Executive Board around mid-June 2022.

At the end of the mission, Mr. Lonkeng issued the following statement:

“I am pleased to announce that the Beninese authorities and the IMF team have reached a staff-level agreement on new 42-month blended Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements to support the authorities’ economic and financial policies.

“The proposed exceptional access under the ECF/EFF of SDR 484.058 million (equivalent to US$ 658.4 million or 391 percent of quota) seeks to help Benin address pressing financing needs, preserve macroeconomic stability, and anchor the country’s National Development Plan centered on achieving Sustainable Development Goals (SDGs).