Togo will receive about US$241.5million from the IMF under the Extended Credit Facility (ECF) – a lending arrangement that provides sustained program engagement over the medium to long term in case of protracted balance of payments problems of the IMF. The fund is provided under a three year arrangement and is expected to be used in support of Togo’s economic and financial reform. In the first phase, the country will receive US$34.5 million while the remaining money will be given out following semi-annual reviews by IMF over the three year period. ECF-supported program aims to reinforce macroeconomic stability and to promote sustainable and inclusive growth. It aims to reduce the overall fiscal deficit substantially upfront to ensure long-term debt and external sustainability; refocus policies on sustainable and inclusive growth through targeted social spending and infrastructure spending that is financially sustainable; and resolve the existing financial sector weaknesses, especially in the two public banks.
Commenting on the development, Mr. Tao Zhang (Deputy Managing Director) mentioned that “Togo’s economy has shown solid performance in recent years, with sustained growth and low inflation”. He furthered, “The new arrangement under the ECF will support the authorities’ efforts towards fiscal consolidation while maintaining space for pro-poor spending. Public financial and debt management will be strengthened and revenue administration bolstered.”