Public debt situation in Benin
Benin's outstanding public debt stood at FCFA 4,156.85 billion as of December 31, 2020, i.e. a debt ratio of 46.14% against 41.23% at the end of 2019.
Benin’s outstanding public debt stood at CFAF 4,156.85 billion as of December 31, 2020, i.e. a debt ratio of 46.14% against 41.23% at the end of 2019. Despite the increase , the various debt sustainability criteria are respected both at the sub-regional and international levels.
The public debt ratio rose to 46.14% against 41.23% in 2019 (updated rate), according to the Statistical Bulletin of the public debt in the fourth quarter of 2020 of the Caisse Autonomous d ‘ damping (Caa).
This progression is linked to the rate of disbursements made during the year due to the good progress of the work of the various projects, to all the financing contracted by Benin within the framework of the implementation of the response plan against the Covid-19 pandemic and the evolution of the macroeconomic framework, analyzes the Caa. It underlines that Benin’s public debt ratio remains well below that of sub-Saharan Africa estimated at 56.2% by the International Monetary Fund (IMF) last April, and the community threshold of 70% set (standards Uemoa).
In fact, the outstanding public debt at December 31, 2020 stood at CFAF 4,156.85 billion against CFAF 3,476.59 billion at the end of 2019. It was made up of CFAF 2,339.67 billion in debt. denominated in foreign currencies and FCfa 1817.19 billion for the debt denominated in local currency. The external debt represents 25.97% while the internal debt is calculated at 20.17% of the gross domestic product (GDP).
The share of domestic debt in the public debt portfolio increases by 2 percentage points from 41.88% in 2019 to 44% in 2020. It mainly consists of government securities which represent 82.84% of its outstanding total at the end of December 2020, but also bank financing in local currency contracted by the central administration (17.16%).