Togo: IMF deems the government's reforms satisfactory and disburses $34.6 mln under its ECF-supported program
Monday, 28 October 2019 16:09 
(Togo First) - The International Monetary Fund (IMF) has recently approved the disbursement of $34.6 million for Togo, as it deemed the country's "performance under the ECF-supported program has been broadly satisfactory".
With this, overall disbursements from the institution for the country is around $207.8 million, over an amount of $242.4 million agreed under a three-year arrangement.
"This program aims to reduce the overall fiscal deficit substantially to ensure long-term debt and external sustainability; refocus policies on inclusive growth through targeted social spending and sustainably-financed infrastructure spending, and resolve the financial weaknesses in the two public banks."
The Fund also lauds the "authorities' determination to pursue fiscal consolidation and debt reduction."
According to the Bretton Woods institution, "the economic recovery seems to be taking hold, structural reforms are progressing, and the fiscal consolidation continues. Togo has complied with the WAEMU deficit criteria since 2017; the overall fiscal deficit is projected at 2.9 percent of GDP in 2019 and 1.9 percent of GDP in 2020. Debt has declined and is expected to fall below 70 percent of GDP from 2020."
However, the Fund notes that "there are downside risks related to the global economic environment, regional security conditions, and the potential impact of the electoral cycle on domestic economic activity." Togo's economic growth is projected to accelerate to 5.3 percent in 2019 and to hover around 5% over the medium term, it adds.
