## IMF Executive Board Completes the First Review under the Extended Credit Facility (ECF) Arrangement for Togo _IMF News, December 20, 2024_ ## Source details **Canonical URL:** [IMF Executive Board Completes the First Review under the Extended Credit Facility (ECF) Arrangement for Togo](https://www.imf.org/en/news/articles/2024/12/20/pr24494-togo-imf-exec-board-completes-first-rev-ecf-arrangement) ## Other formats - [Markdown version](/en/news/articles/2024/12/20/pr24494-togo-imf-exec-board-completes-first-rev-ecf-arrangement/index.md) - [Structured JSON version](/en/news/articles/2024/12/20/pr24494-togo-imf-exec-board-completes-first-rev-ecf-arrangement/index.json) - [Bundle manifest](/en/news/articles/2024/12/20/pr24494-togo-imf-exec-board-completes-first-rev-ecf-arrangement/bundle-manifest.json) ## Bibliographic details - Published: December 20, 2024 --- ### Executive Board decision and financing - 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 objectives and context - Program aims: - (i) Make growth more inclusive while strengthening debt sustainability. - (ii) Implement structural reforms to support growth and limit financial sector and associated fiscal risks. - Context: - The arrangement helps address legacies of shocks since 2020, notably the COVID-pandemic and the increase in global food and fuel prices. - Managing those shocks contributed to increases in fiscal deficits and debt. ### Macroeconomic performance and medium-term outlook - Growth: - Economic growth reached an estimated 5.6 percent in 2023. - 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. - Inflation: - Headline inflation eased to 3.3 percent in October 2024. - Core inflation (which excludes the prices of food and transport) eased to 2.2 percent (annual averages). - Outlook characterization: - The medium-term outlook is broadly favorable with continued robust growth but subject to elevated risks. ### Key risks and fiscal trade-offs - Security risk: - Terrorist attacks in the country’s North continue unabated and appear to be intensifying, putting pressure on spending. - Fiscal trade-offs: - 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. ### Program implementation and structural progress - Quantitative performance: - Authorities have met all end-June quantitative performance criteria. - Prospects for meeting the quantitative targets for the rest of the year are favorable. - Structural benchmarks: - Authorities met two out of four due structural benchmarks. - Prospects exist to deliver at a later stage on limited elements that led to two missed benchmarks. - Prospects for meeting the two end-December benchmarks are good. - Financial sector reform: - Authorities have made good progress on the reform of the remaining state-owned bank. ### Policy recommendations and priorities (from Acting Chair statement) - Fiscal policy: - Aim to address debt vulnerabilities in a context of regional vulnerabilities while supporting growth and enhancing inclusion. - Implement the agreed fiscal anchor by limiting fiscal deficits to 3 percent of GDP from 2025 onwards. - Continue to raise tax revenue while making taxation more efficient. - Implement structural reforms to enhance the efficiency of spending and make the social safety net more effective and efficient. - Governance and transparency: - Continue efforts to strengthen governance. - The authorities’ request for an IMF Governance Diagnostic is welcome. - Strengthen beneficial ownership declarations for companies benefiting from public procurement contracts. - Financial sector and AML/CFT: - 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. - Efforts to strengthen the AML/CFT framework will be important. ### Selected economic and financial indicators (2020–29) — key figures (estimates and projections) - 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): - Net foreign assets: 2020: 14.1; 2021: -0.6; 2022: 6.2; 2023: 4.9; 2024: -0.1. - 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. - 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. - Broad money (M2): 2020: 11.4; 2021: 12.3; 2022: 14.9; 2023: 8.5; 2024: 8.8; 2025: 7.4. - Velocity (GDP/end-of-period M2): 2020: 2.1. - Investment and savings: - 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. - 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. - 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. - 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. - Fiscal and public debt indicators: - Total revenue and grants: 2020: 16.6; 2021: 19.8; 2022: 19.1; 2023: 19.5; 2024: 19.9. - Revenue: 2020: 15.3; 2021: 15.1; 2022: 16.8; 2023: 18.1; 2024: 18.5. - Tax revenue: 2020: 12.5; 2021: 14.0; 2022: 13.9; 2023: 14.8; 2024: 15.7; 2025: 17.2. - 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. - 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. - 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. - Overall balance (commitment basis, incl. grants): 2020: -6.4. - Overall primary balance (cash basis, incl. grants): 2020: -3.4. - Overall balance (cash basis, incl. grants, excl. banking sector operations): 2020: -7.1; 2021: -5.6. - Overall balance (cash basis, incl. grants): 2020: -. - External sector: - Current account balance: 2020: -2.2; 2021: -3.5; 2022: -2.6. - Exports (goods and services): 2020: 25.5; 2021: 25.6; 2022: 26.2; 2023: 26.1. - 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. - 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. - 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. - 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. - 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. - 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. - 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. *Sources: Togolese authorities and IMF staff estimates and projections. Press Release No. 24/494.* --- ## References - [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) _Source: https://www.imf.org/en/news/articles/2024/12/20/pr24494-togo-imf-exec-board-completes-first-rev-ecf-arrangement_