Benin’s Public Debt ⁣Management: A Success Story

Benin has made significant strides in managing ⁢its⁤ public debt, with a repayment of almost 500 billion FCFA in ​the first half of‌ 2024. According ⁣to the Public Debt Statistical Bulletin for ⁢the second quarter of 2024, the country has no public debt ⁣service arrears as of ‌June 30, 2024.

The ‍bulletin reveals‌ that the public debt ⁤service was provided in the first ⁢half of 2024 for an⁤ amount of 499.78 billion FCFA, including 334.48 billion FCFA to repay principal and 165.30 billion FCFA to​ pay financial charges.

Benin’s outstanding public debt amounts to 6,756.9 billion FCFA, with external debt representing 70.7% ⁣of⁢ this amount, totaling 4,774.1 billion FCFA, while internal debt stands at 1,982.8 billion FCFA.

Non-resident debts hold the majority of the debt, accounting for 85.7% of the total, highlighting the country’s reliance on external financing. The euro ⁢remains the‍ primary‌ debt⁤ currency,⁣ representing 51.7% of ‌the total debt, followed by⁢ the CFA franc (29.3%) and the US dollar (10.6%).

The public debt ratio,‍ measured ⁤by the ratio of outstanding debt to gross​ domestic ‌product (GDP), ‍stands at 52.1%, a⁤ slight⁢ decrease compared to the rate⁤ of 52.4% recorded at the end of the first quarter of the year.

This rate remains below the community standard set at⁤ 70% of GDP ‌in ⁤the West African Economic⁤ and Monetary Union ⁣(WAEMU), reflecting a prudent and complex management of Benin’s public finances.

Author: Ange Aristide BYLL