Despite the economic growth in Togo, it remains highly under-financed

Banking
Saturday, 05 October 2019 17:59
Despite the economic growth in Togo, it remains highly under-financed

(Togo First) - In Togo, while the growth forecast had been scaled up by the IMF twice this year, the banking sector has contributed very little to this situation. This is one of the reflections that emerged from the recent 3rd national council on credit (CNC).

Further marking the paradox is the country's controlled inflation and budget deficit which meets regional standards.

Though not all gloomy, this situation raises concerns especially for the minister of development planning and cooperation, Demba Tignokpa, who said at the recent CNC: "Looking at new credit provisions, they slumped 8.1% over the first six months of this year, in comparison to the same period in 2018."

However, at end-June 2019, stocks of loans to the economy grew by 4.9% year-on-year, 4.2% at March 31, against 4.1% at the end of December 2018. Similarly, the average interest rate on bank loans reduced to 7.65% on June 30, 2019, against 8.52% at the same date the year before.

These improvements drove the ratio of lending to the economy against GDP to 40%. Regardless, Minister Tignokpa maintains, banks still barely support the economy and sectors like agriculture and housing suffer the most from the situation, only receiving "crumbs" from Togolese banks.

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