Via IMF (Den Internationale Valutafond)

IMF Executive Board Completes the Sixth Review under Togo’s ECF Arrangement and Augments Disbursement to Address the Impact of COVID-19

April 3, 2020

  • The Executive Board decision allows an immediate disbursement of US$131.3 million to Togo, which is almost four times larger than previously foreseen.
  • The augmentation of access will help the authorities address the human and economic implications of COVID-19 pandemic.
  • After three years of implementation of the Fund-supported program, performance is satisfactory in most sectors; reforms encountered delays in the financial sector.

Washington, DC –
The Executive Board of the International Monetary Fund (IMF) completed the
sixth and final review of Togo’s economic performance under a program
supported by an Extended Credit Facility (ECF) arrangement.


The completion of the review enables the disbursement of SDR 96.63 million
(about US$131.3 million), bringing total
disbursements under the arrangement to SDR 247.65 million (about US$ 336.4 million).

Togo’s three-year arrangement of SDR 176.16 million (about US$239.3
million, 120 percent of Togo’s quota) was approved on May 5, 2017 (see

Press Release No.17/151

). In completing the sixth review, the Executive Board also approved the
authorities’ request for an augmentation of access under the ECF
arrangement of 48.7 percent of Togo’s quota (SDR 71.49 million or about US$97.1 million)
to address the urgent financing need stemming from the authorities’
efforts and plans to control the spread of COVID-19 and mitigate its
economic impacts.

Togo made significant progress during 2017-19 under the Fund-supported
program in several areas, while reforms remain incomplete in a key

Economic recovery was firming up but has recently been hindered by the
COVID-19 pandemic. Growth projections for 2020 have been significantly
revised downwards. The fiscal deficit and the balance of payment financing
gap are expected to widen substantially due to revenue loss, higher
healthcare spending, and weaker exports.

Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy
Managing Director and Acting Chair, made the following statement:

“Togo’s performance under the ECF-supported program has been broadly
satisfactory. While the economic recovery was firming up, it has recently
been hindered by the COVID-19 pandemic. The macroeconomic outlook is
subject to a high degree of uncertainty.

“The authorities are taking immediate actions to address the human and
economic implications of the COVID-19 pandemic while safeguarding the
hard-won fiscal achievements. During 2017-19, Togo has been complying with
the WAEMU convergence criterion of a fiscal deficit not exceeding 3 percent
of GDP. For 2020, the fiscal deficit and the balance of payments financing
gap are forecast to widen due to additional healthcare spending and other
impacts of COVID-19 on the economy. Nonetheless, public debt is still
projected to remain on a downward path.

“Structural reforms are progressing on revenue administration and public
financial management. Progress has been made on collection of tax arrears,
online submission of customs declarations, and steps toward program-based
budgeting. It will be important to implement recommendations from a recent
Tax Administration Diagnostic Assessment Tool, address remaining
deficiencies in essential customs functions, and bolster voluntary
compliance to ensure strong permanent revenue. Following up on key
recommendations from the 2016 and 2019 Public Investment Management
Assessments is also essential. In addition, pursuing a prudent borrowing
policy and strengthening debt management capacity are necessary to
safeguard debt sustainability.

“Togo is amongst the best performers in the improvement of the business
environment in recent years. It will be important to pursue such reforms,
including strengthening governance, and to implement the measures outlined
in the National Development Plan to support strong and inclusive growth.
Completing the delayed reforms of the two state-owned banks is paramount to
safeguarding financial stability and preventing risks to the state budget.”


The ECF is a lending arrangement that provides sustained program
engagement over the medium to long term in case of protracted
balance of payment problems.

IMF Communications Department

PRESS OFFICER: Gediminas Vilkas

Phone: +1 202 623-7100Email:


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