{
  "title": "IMF Executive Board Completes the First Review under the Extended Credit Facility (ECF) Arrangement for Togo",
  "publication": "IMF News, December 20, 2024",
  "sourceUrl": "https://www.imf.org/en/news/articles/2024/12/20/pr24494-togo-imf-exec-board-completes-first-rev-ecf-arrangement",
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  "summary": "The IMF Executive Board completed today the first review under the ECF-arrangement for Togo, allowing the authorities to draw the equivalent of about US$57.4 million (SDR 44.0 million). The Executive Board approved the 42-month ECF-arrangement in March 2024.",
  "publishDate": "2024-12-20",
  "sections": [
    {
      "heading": "Executive Board decision and financing",
      "content": "- The Executive Board completed the first review under the ECF-arrangement for Togo and approved the immediate disbursement of SDR 44.0 million (about US$ 58.7 million) to be used for budget support.\n- The 42-month ECF-arrangement provides overall financing of SDR 293.60 million (about US$ 390 million).\n- The IMF approved the ECF-arrangement on March 1st, 2024 (Press Release No. 24/64)."
    },
    {
      "heading": "Program objectives and context",
      "content": "- Program aims:\n  - (i) Make growth more inclusive while strengthening debt sustainability.\n  - (ii) Implement structural reforms to support growth and limit financial sector and associated fiscal risks.\n- Context:\n  - The arrangement helps address legacies of shocks since 2020, notably the COVID-pandemic and the increase in global food and fuel prices.\n  - Managing those shocks contributed to increases in fiscal deficits and debt."
    },
    {
      "heading": "Macroeconomic performance and medium-term outlook",
      "content": "- Growth:\n  - Economic growth reached an estimated 5.6 percent in 2023.\n  - Projected at 5.3 percent in 2024-25 and around 5.5 percent per year thereafter according to IMF staff projections, barring major adverse shocks.\n- Inflation:\n  - Headline inflation eased to 3.3 percent in October 2024.\n  - Core inflation (which excludes the prices of food and transport) eased to 2.2 percent (annual averages).\n- Outlook characterization:\n  - The medium-term outlook is broadly favorable with continued robust growth but subject to elevated risks."
    },
    {
      "heading": "Key risks and fiscal trade-offs",
      "content": "- Security risk:\n  - Terrorist attacks in the country’s North continue unabated and appear to be intensifying, putting pressure on spending.\n- Fiscal trade-offs:\n  - Authorities face challenging trade-offs between fiscal consolidation to lower the debt burden and the need to maintain robust growth in the context of limited fiscal space."
    },
    {
      "heading": "Program implementation and structural progress",
      "content": "- Quantitative performance:\n  - Authorities have met all end-June quantitative performance criteria.\n  - Prospects for meeting the quantitative targets for the rest of the year are favorable.\n- Structural benchmarks:\n  - Authorities met two out of four due structural benchmarks.\n  - Prospects exist to deliver at a later stage on limited elements that led to two missed benchmarks.\n  - Prospects for meeting the two end-December benchmarks are good.\n- Financial sector reform:\n  - Authorities have made good progress on the reform of the remaining state-owned bank."
    },
    {
      "heading": "Policy recommendations and priorities (from Acting Chair statement)",
      "content": "- Fiscal policy:\n  - Aim to address debt vulnerabilities in a context of regional vulnerabilities while supporting growth and enhancing inclusion.\n  - Implement the agreed fiscal anchor by limiting fiscal deficits to 3 percent of GDP from 2025 onwards.\n  - Continue to raise tax revenue while making taxation more efficient.\n  - Implement structural reforms to enhance the efficiency of spending and make the social safety net more effective and efficient.\n- Governance and transparency:\n  - Continue efforts to strengthen governance.\n  - The authorities’ request for an IMF Governance Diagnostic is welcome.\n  - Strengthen beneficial ownership declarations for companies benefiting from public procurement contracts.\n- Financial sector and AML/CFT:\n  - Continue the reform of the remaining public bank by bringing the bank’s capital in line with regulatory requirements and reforming its operations to ensure stability and profitability.\n  - Efforts to strengthen the AML/CFT framework will be important."
    },
    {
      "heading": "Selected economic and financial indicators (2020–29) — key figures (estimates and projections)",
      "content": "- Real GDP (percentage change): 2020: 2.0; 2021: 6.0; 2022: 5.8; 2023: 5.6; 2024: 5.3; 2025: 5.5.\n- Real GDP per capita (percentage change): 2020: -0.4; 2021: 3.5; 2022: 3.3; 2023: 3.1; 2024: 2.8; 2025: 3.0.\n- GDP deflator (percentage change): 2020: 1.8; 2021: 2.5; 2022: 3.7; 2023: 2.9; 2024: 2.2.\n- Consumer price index (average): 2020: 4.5; 2021: 7.6; 2022: 2.3.\n- GDP (CFAF billions): 2020: 4253; 2021: 4621; 2022: 5069; 2023: 5507; 2024: 5927; 2025: 6366; 2026: 6850; 2027: 7371; 2028: 7932; 2029: 8536.\n- Exchange rate CFAF/US$ (annual average level): 2020: 575; 2021: 554; 2022: 622; 2023: 606; 2024: ….\n- Real effective exchange rate (appreciation = –): 2020: -2.0; 2021: -1.4; 2022: -5.4.\n- Terms of trade (deterioration = –): 2020: 6.6; 2021: 23.3; 2022: 3.4; 2023: 0.9; 2024: -1.7; 2025: -0.8; 2026: 1.4; 2027: 1.3; 2028: 0.4.\n- Monetary survey (percentage change of beginning-of-period broad money):\n  - Net foreign assets: 2020: 14.1; 2021: -0.6; 2022: 6.2; 2023: 4.9; 2024: -0.1.\n  - Net credit to government: 2020: -1.6; 2021: -0.3; 2022: 8.0; 2023: 0.2; 2024: -2.9; 2025: 1.0; 2026: 1.2.\n  - Credit to nongovernment sector: 2020: 10.7; 2021: 1.5; 2022: 7.3; 2023: 6.5; 2024: 4.4; 2025: 4.6; 2026: 4.8.\n  - Broad money (M2): 2020: 11.4; 2021: 12.3; 2022: 14.9; 2023: 8.5; 2024: 8.8; 2025: 7.4.\n  - Velocity (GDP/end-of-period M2): 2020: 2.1.\n- Investment and savings:\n  - Gross domestic investment: 2020: 21.4; 2021: 23.4; 2022: 25.9; 2023: 28.0; 2024: 25.7; 2025: 24.2; 2026: 25.0; 2027: 26.7; 2028: 27.2.\n  - Government investment: 2020: 9.3; 2021: 8.2; 2022: 9.7; 2023: 11.5; 2024: 9.0; 2025: 7.1; 2026: 7.7; 2027: 8.4; 2028: 8.9; 2029: 9.4.\n  - Nongovernment investment: 2020: 12.1; 2021: 15.2; 2022: 16.2; 2023: 16.5; 2024: 16.7; 2025: 17.1; 2026: 17.3; 2027: 17.5; 2028: 17.8.\n  - Gross national savings: 2020: 21.1; 2021: 21.2; 2022: 22.5; 2023: 25.1; 2024: 22.7; 2025: 22.4; 2026: 23.7; 2027: 24.7; 2028: 25.2.\n- Fiscal and public debt indicators:\n  - Total revenue and grants: 2020: 16.6; 2021: 19.8; 2022: 19.1; 2023: 19.5; 2024: 19.9.\n  - Revenue: 2020: 15.3; 2021: 15.1; 2022: 16.8; 2023: 18.1; 2024: 18.5.\n  - Tax revenue: 2020: 12.5; 2021: 14.0; 2022: 13.9; 2023: 14.8; 2024: 15.7; 2025: 17.2.\n  - Expenditure and net lending (excl. banking sector operation): 2020: 21.8; 2021: 26.0; 2022: 26.6; 2023: 21.6; 2024: 22.0; 2025: 22.6; 2026: 22.9.\n  - Overall primary balance (commitment basis, incl. grants): 2020: -4.7; 2021: -2.5; 2022: -5.9; 2023: -3.9; 2024: -3.7; 2025: -0.5; 2026: -1.0; 2027: -1.1.\n  - Overall balance (commitment basis, incl. grants, excl. banking sector operations): 2020: -7.0; 2021: -8.3; 2022: -6.7; 2023: -4.9; 2024: -3.0.\n  - Overall balance (commitment basis, incl. grants): 2020: -6.4.\n  - Overall primary balance (cash basis, incl. grants): 2020: -3.4.\n  - Overall balance (cash basis, incl. grants, excl. banking sector operations): 2020: -7.1; 2021: -5.6.\n  - Overall balance (cash basis, incl. grants): 2020: -.\n- External sector:\n  - Current account balance: 2020: -2.2; 2021: -3.5; 2022: -2.6.\n  - Exports (goods and services): 2020: 25.5; 2021: 25.6; 2022: 26.2; 2023: 26.1.\n  - Imports (goods and services): 2020: -32.3; 2021: -34.0; 2022: -38.8; 2023: -36.2; 2024: -35.4; 2025: -34.4; 2026: -33.9; 2027: -33.7; 2028: -33.5.\n  - External public debt1: 2020: 27.6; 2021: 27.3; 2022: 29.5; 2023: 29.0; 2024: 29.9; 2025: 30.6; 2026: 30.8; 2027: 30.4.\n  - External public debt service (percent of exports)1: 2020: 6.9; 2021: 5.2; 2022: 8.3; 2023: 15.5; 2024: 9.2; 2025: 7.2.\n  - Domestic public debt2: 2020: 34.6; 2021: 37.6; 2022: 41.2; 2023: 42.1; 2024: 40.2; 2025: 39.1; 2026: 36.6; 2027: 34.3; 2028: 32.3; 2029: 31.4.\n  - Total public debt3: 2020: 62.2; 2021: 64.9; 2022: 67.4; 2023: 68.0; 2024: 69.7; 2025: 68.2; 2026: 66.4; 2027: 64.8; 2028: 63.1; 2029: 61.8.\n  - Total public debt (excluding SOEs)4: 2020: 60.1; 2021: 63.0; 2022: 65.8; 2023: 66.6; 2024: 68.6; 2025: 67.2; 2026: 65.6; 2027: 64.1; 2028: 62.5; 2029: 61.3.\n  - Present value of total public debt3: 2020: 60.6; 2021: 60.7; 2022: 57.7; 2023: 54.5; 2024: 51.5; 2025: 48.8; 2026: 47.1.\n\nSources: Togolese authorities and IMF staff estimates and projections. Press Release No. 24/494.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Togo and the IMF\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- ECF\n- Press Release No. 24/64\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2024/12/20/pr24494-togo-imf-exec-board-completes-first-rev-ecf-arrangement"
    }
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    "Published: December 20, 2024",
    "The Executive Board completed the first review under the ECF-arrangement for Togo and approved the immediate disbursement of SDR 44.0 million (about US$ 58.7 million) to be used for budget support.",
    "The 42-month ECF-arrangement provides overall financing of SDR 293.60 million (about US$ 390 million).",
    "The IMF approved the ECF-arrangement on March 1st, 2024 (Press Release No. 24/64).",
    "Program aims:",
    "Context:",
    "Growth:",
    "Inflation:",
    "Outlook characterization:",
    "Security risk:",
    "Fiscal trade-offs:",
    "Quantitative performance:",
    "Structural benchmarks:",
    "Financial sector reform:",
    "Fiscal policy:",
    "Governance and transparency:",
    "Financial sector and AML/CFT:",
    "Real GDP (percentage change): 2020: 2.0; 2021: 6.0; 2022: 5.8; 2023: 5.6; 2024: 5.3; 2025: 5.5.",
    "Real GDP per capita (percentage change): 2020: -0.4; 2021: 3.5; 2022: 3.3; 2023: 3.1; 2024: 2.8; 2025: 3.0.",
    "GDP deflator (percentage change): 2020: 1.8; 2021: 2.5; 2022: 3.7; 2023: 2.9; 2024: 2.2.",
    "Consumer price index (average): 2020: 4.5; 2021: 7.6; 2022: 2.3.",
    "GDP (CFAF billions): 2020: 4253; 2021: 4621; 2022: 5069; 2023: 5507; 2024: 5927; 2025: 6366; 2026: 6850; 2027: 7371; 2028: 7932; 2029: 8536.",
    "Exchange rate CFAF/US$ (annual average level): 2020: 575; 2021: 554; 2022: 622; 2023: 606; 2024: ….",
    "Real effective exchange rate (appreciation = –): 2020: -2.0; 2021: -1.4; 2022: -5.4.",
    "Terms of trade (deterioration = –): 2020: 6.6; 2021: 23.3; 2022: 3.4; 2023: 0.9; 2024: -1.7; 2025: -0.8; 2026: 1.4; 2027: 1.3; 2028: 0.4.",
    "Monetary survey (percentage change of beginning-of-period broad money):",
    "Investment and savings:",
    "Fiscal and public debt indicators:",
    "External sector:",
    "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)",
    "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)",
    "[Togo and the IMF](http://www.imf.org/external/country/TGO/index.htm)",
    "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[ECF](https://www.imf.org/en/About/Factsheets/Sheets/2023/Extended-Credit-Facility-ECF)",
    "[Press Release No. 24/64](https://www.imf.org/en/News/Articles/2024/03/01/pr2464-togo-imf-exec-board-approves-us390m-42m-arr-ecf)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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