Press Release: IMF Managing Director Dominique Strauss-Kahn Underscores Commitment to Togo in Wake of Devastating Floods
August 7, 2008Press Release No. 08/190
Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), has received an urgent request from President Faure Gnassingbé of Togo to provide IMF support to the African country, which has been recently hit by devastating floods. Mr. Strauss-Kahn underscored the institution's strong commitment to Togo, noting his intention to recommend to the Executive Board a rapid increase in existing financial support to the nation via the Poverty Reduction and Growth Facility (PRGF) arrangement.
"I have had a telephone conversation with President Gnassingbé, in which he sought the Fund's support. I offered my deepest condolences and sympathy to the people of Togo, and agreed that this is a very challenging time for them and the government," the Managing Director stated. "It is important for the Fund to signal its continued financial support, and I will be recommending to the Executive Board that our existing PRGF arrangement with Togo be increased. I am hopeful that the Fund's Executive Board can consider and approve this critical financing as soon as possible."
Mr. Strauss-Kahn noted that an IMF staff mission has been scheduled to arrive in Togo's capital, Lomé, on August 27, as part of a regular review of Togo's SDR 66.06 million PRGF arrangement (see Press Release No. 08/90). Given widespread flooding in the nation, which has led to numerous deaths and injuries, and has caused significant economic disruption, the Managing Director said a senior IMF economist will be sent to Togo on August 13, ahead of the review mission, to focus on immediate actions that can be undertaken to help the authorities and the donor community address Togo's emerging needs.
The PRGF is the IMF's concessional facility for low-income countries. PRGF loans carry an annual interest rate of 0.5 percent and are repayable over 10 years with a 5 ½-year grace period on principal payments.