IMF Executive Board Approves Disbursement Following Togo’s ECF Review Completion

Washington: The Executive Board of the International Monetary Fund (IMF) completed the combined third and fourth reviews under the Extended Credit Facility (ECF) arrangement for Togo. This completion allows for the immediate disbursement of SDR 80.74 million (approximately USD 109.5 million), bringing the total disbursements under the arrangement to SDR 220.2 million (about USD 298.63 million). In concluding the review, the Executive Board also approved waivers of nonobservance for certain quantitative performance criteria (QPC) due to minor and temporary delays in external disbursements and evolving financing conditions. According to the International Monetary Fund, Togo is actively implementing an economic reform agenda to counter the effects of the COVID-19 pandemic and the rise in global food and fuel prices, while also setting the stage for robust and inclusive growth. The ECF-supported program, approved in March 2024 for SDR 293.6 million (around USD 403.4 million), is pivotal in supporting these refor ms. Togo's economy has demonstrated resilience, with a 6 percent growth in real GDP in 2025, driven by the services sector, although growth is expected to slow in 2026 due to geopolitical tensions, particularly the ongoing conflict in the Middle East. The implementation of the ECF program has been broadly satisfactory, with most performance criteria met and significant progress in structural reforms. Since the second review, Togo has successfully implemented seven out of eight planned structural reforms, including enhancements in public financial management and fiscal transparency. Social and pro-poor spending targets have also been achieved, underscoring the government's commitment to shielding vulnerable groups. Following the Executive Board's discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, made a statement emphasizing the resilience of Togo's economy despite external and regional challenges. He noted the importance of maintaining fiscal consolidation to ensure debt sustainabilit y and the need for continued reforms in tax policy, financial sector stability, and governance to secure sustained growth. Efforts to address banking sector vulnerabilities are underway, with the initiation of an independent asset quality review of weaker financial institutions. This step is crucial for developing a credible strategy to safeguard financial stability and manage fiscal costs effectively. Structural reforms will continue to focus on growth-supportive areas and mitigating fiscal risks. Priorities include strengthening governance in the electricity sector, enhancing fiscal reporting and debt transparency, and improving oversight of state-owned enterprises. Additionally, governance reforms such as anti-corruption measures and the implementation of the Governance Diagnostic Assessment are essential for advancing Togo's economic agenda.