IMF Staff Country Reports

This paper discusses Togo’s First Review under the Extended Credit Facility (ECF) Arrangement. Togo's growth performance has remained robust, and inflation is moderating. The medium-term outlook is broadly favorable, with continued robust growth but also elevated risks. The IMF-supported government program aims to make growth more inclusive while strengthening debt sustainability and implement structural reforms to support growth and limit financial sector and associated fiscal risks. Implementation of the program is on track. The authorities have met all end-June quantitative performance criteria, and prospects for meeting the quantitative targets for the rest of the year are favorable. In the area of fiscal policies, the authorities should continue to aim to address debt vulnerabilities in a context of regional vulnerabilities while supporting growth and enhancing inclusion. On the financial sector, the authorities should 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 its stability and profitability.