IMF reviews Togo’s Economic Performance

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  IMF completed the final review of Togo’s economic performance under the Extended Credit Facility (ECF) arrangement 

  Togo’s three-year arrangement US$239.3 million was approved on May 5, 2017  

The Executive Board of the International Monetary Fund (IMF) completed the final review of Togo’s economic performance under the IMF supported Programme namely Extended Credit Facility (ECF) arrangement. It is a lending arrangement that provides sustained program engagement over the medium to long term in case of protracted balance of payment problems.

Togo’s three-year arrangement of SDR 176.16 million (about US$239.3 million) was approved on May 5, 2017. After completing the sixth and final review, the Executive Board also approved the request for an increase of access under the ECF arrangement of 48.7 percent of Togo’s quota (SDR 71.49 million or about US$97.1 million). The additional allocation was sought to tackle the urgent financing need to control the spread of COVID-19 and mitigate its economic consequences. The final review allocates SDR 96.63 million (about US$131.3 million) taking the total disbursements under the arrangement to SDR 247.65 million (about US$ 336.4 million).

The IMF supported Programme has brought significant progress in several sectors of Togo during 2017-19. However, the fiscal deficit and the balance of payment financing gap are expected to go up due to revenue loss, higher healthcare spending, and weaker exports as a result of COVID 19. Mr. Mitsuhiro Furusawa,IMF Deputy Managing Director and Acting Chair, observed that though Togo’s economic performance under the ECF-supported program has been satisfactory, with signs of economic recovery, the process has been hindered by the COVID-19 pandemic. The uncertainty of the macroeconomic outlook has led to downward revision of growth for 2020.

IMF assessed Togo as one of the best performers in the improvement of the business environment in recent years. It urged the country to continue reforms, particularly strengthening governance, and to implement the measures outlined in the National Development Plan to support strong and inclusive growth. It also warned that completing the delayed reforms of the two state-owned banks was critical to safeguard financial stability and preventing risks to the state budget.