Benin - Joint World Bank-IMF Debt Sustainability Analysis
Benin remains at moderate risk of external debt distress. The rating is unchanged from the previous November 2018 DSA. All the projected external debt burden indicators remain below their thresholds under the baseline, but the ratio of the present...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/850681570637260305/Benin-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-July-2019 http://hdl.handle.net/10986/32568 |
| Summary: | Benin remains at moderate risk of
external debt distress. The rating is unchanged from the
previous November 2018 DSA. All the projected external debt
burden indicators remain below their thresholds under the
baseline, but the ratio of the present value (PV) of
external debt to exports exceeds its threshold in the case
of an extreme shock to exports.1 With regard to total public
and publicly guaranteed (PPG) debt (external plus domestic),
the overall risk of debt distress remains also moderate. The
public debt-to-GDP ratio is below its prudent benchmark in
the baseline scenario; however, the PV of public debt-to-GDP
rises very slightly above its benchmark from 2024 until the
end of the projection period under the real GDP shock
scenario. Other factors motivating the overall rating
include: the past evolution of domestic debt, the relatively
high debt service burden, as well as the existence of
contingent liabilities. Medium-term fiscal consolidation,
sound public investment management, and enhanced debt
management capacity are needed to reduce debt vulnerabilities. |
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