Togo: Multilateral debt increases by almost 50% from 2019 to 2020
Friday, 28 May 2021 15:57 
(Togo First) - Due to the economic damage caused by Covid-19, Togo’s multilateral debt surged from CFA331 billion in 2019 to CFA478 billion at end-2020, a difference of 44% approximately.
This is in a context where Togo says it has reimbursed around CFA12 billion as principal, subsequent to the cancelation of the IMF debt. Moreover, fluctuations in exchange rates saved the country about CFA3 billion on its multilateral debt.
The latter, let’s emphasize, currently represents nearly 49% (48.8%) of Togo’s external debt portfolio. Other types of debts in this portfolio are bilateral and commercial debts.
Togo’s three biggest multilateral lenders - the IMF, the World Bank, and the Islamic Development Bank (IDB) - detain nearly 82% of its multilateral debt.
The IMF comes first with 42% of the amount that the country owes multilateral institutions; this corresponds to CFA201 billion against CFA126 billion in 2019. The huge difference was driven by a loan of CFA79 billion that the entity provided to Togo in April 2020, to support its anti-Covid-19 plan. According to national data, the average maturity of the IMF's outstanding debt is 10 years, with an annual interest rate of 0.5%.
Behind the IMF is the World Bank’s International Development Association (IDA) with 26% of the debt. At end-December 2020, Togo was owing the financing body CFA128 billion (against CFA81.41 billion).
In 2020, Lomé received about CFA37 billion from the IDA to finance the socio-economic recovery, amid the covid-19. The country is to pay back what it owes within 36 years, with a grace period of six years. Each year, the country pays interest of 0.75%.
The last of the big three lenders of Togo is the Islamic Development Bank (IDB). It detains 12% of the country’s multilateral debt portfolio - CFA61.45 billion. This is 15% more than the CFA53.36 billion provided in 2019.
Esaïe Edoh
