(Togo First) - The International Monetary Fund (IMF) will provide Togo with a 42-month financing of $390 million under a new extended credit facility program (ECF).
According to the IMF, the deal, recently signed by the two parties, aims to help Togo meet its urgent spending needs while fostering economic stability and social inclusion.
The agreement was signed after an IMF team visited Lomé, from November 29 to December 8. The delegation met with the Togolese Minister of Economy and Finance, Sani Yaya.
”The IMF team is pleased to announce that we reached a staff-level agreement with the Togolese authorities on a 42-month program supported by an arrangement under the Extended Credit Facility (ECF) in the amount of SDR 293.60 million, or about US$390 million. The authorities’ economic program aims to preserve economic stability and strengthen debt sustainability while laying the foundations for stronger and more inclusive growth. The staff-level agreement is subject to IMF Management and Executive Board approval,” said the team leader, Hans Weisfeld.
On Togo's part, this new support plan involves reforms aimed at increasing tax revenues by 0.5% of GDP per year, broadening the tax base, and reducing the budget deficit to 3% of GDP by 2025. It will also involve rationalizing public spending while aligning with ambitions to strengthen social protection (notably by extending cash transfers, based on the creation of a single social register and a biometric identification platform).
This new FEC agreement concludes months of talks between Togo and the IMF that started in 2020. Togo expected to close the deal in Q1 2023, but it took a few months more.
Ayi Renaud Dossavi