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IMF Executive Board Completes the Combined Third and Fourth Reviews Under the Extended Credit Facility Arrangement with Togo
FOR IMMEDIATE RELEASE
- The Executive Board of the International Monetary Fund completed the combined third and fourth reviews under the Extended Credit Facility (ECF) arrangement for Togo allowing for an immediate disbursement equivalent to SDR 80.74 million (about USD 5 million).
- Program implementation under the ECF arrangement has been broadly satisfactory. Most quantitative performance criteria for the review period were met, and structural reforms are proceeding steadily, with most structural benchmarks achieved.
- The main near-term policy priority is to carefully balance efforts to contain fiscal pressures stemming from the energy price shock while protecting the most vulnerable. Continued structural reforms to address weaknesses in the state-owned enterprises sector, strengthen the financial sector, and improve governance and the business environment will support competitiveness, investment, and inclusive growth over the medium term.
Washington, DC – June 29, 2026: 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. The completion of the review enables the immediate disbursement of the equivalent of SDR 80.74 million (about USD 109.5) bringing total disbursements under the arrangement to SDR 220.2 (about USD 298.63 million). In completing the review, the Executive board approved waivers of nonobservance of the quantitative performance criterion (QPC) on the ceiling on net domestic financing, and the continuous QPCs on the ceiling on new external borrowing and the non-accumulation of external arrears based on the minor and temporary nature of nonobservance, reflecting delays in external disbursements, administrative constraints, and evolving financing conditions.
Togo is implementing an economic reform agenda to address the legacies of the COVID-19 pandemic and the increase in global food and fuel prices, while laying the foundations for strong and more inclusive growth. The program includes policies to strengthen fiscal and debt sustainability, protect the poor and vulnerable, address banking sector vulnerabilities, make growth more inclusive, and improve the governance framework. These policies are supported by the ECF arrangement, which was approved by the Executive Board in March 2024 in an amount equivalent to SDR 293.6 million (about USD 403.4 million).
Togo’s economy has remained resilient despite global and domestic headwinds. Real GDP grew by about 6 percent in 2025, led by services, while inflation eased. Growth is expected to soften temporarily in 2026 and inflation to rise, mainly due to spillovers from heightened geopolitical tensions, especially the war in the Middle East. Medium-term growth prospects hinge on further progress on structural reforms. Risks remain elevated from regional insecurity, geopolitical tensions, climate shocks and volatile energy and food prices, with financial and external vulnerabilities persisting.
Program implementation under the ECF has been broadly satisfactory. Most quantitative performance criteria for the review period were met, and progress on structural reforms has been strong. Since the completion of the second review, seven of eight structural reforms have been implemented, including measures to improve public financial management, fiscal transparency, and oversight of state-owned enterprises. Social and pro-poor spending targets were also met, reflecting the authorities’ commitment to protecting vulnerable groups.
Following the Executive Board discussion on Togo, Mr. Kenji Okamura, Deputy Managing Director, and Acting Chair, issued the following statement:[1]
“Despite a challenging regional and external environment, performance under the ECF-supported program has been broadly satisfactory. The economy has remained resilient in the face of successive shocks, and the outlook remains broadly favorable. However, significant downside risks, including persistent security threats, geopolitical tensions, and commodity price volatility, cloud the outlook. It is therefore essential to sustain fiscal consolidation momentum, decisively address financial sector’s vulnerabilities and advance structural and governance reforms to achieve sustained and inclusive growth.
“Sustaining fiscal consolidation to preserve debt sustainability and return to the WAEMU fiscal deficit convergence target remains essential. In the short term, the fiscal response to the fuel price shock—particularly the temporary widening of the 2026 deficit to support vulnerable groups—is appropriate. Ongoing reforms in tax policy and administration, including measures to reduce tax expenditures and broaden the tax base, should be swiftly adopted to increase domestic revenue mobilization. While enhancing spending efficiency and maintaining a prudent debt management strategy are key priorities, continued efforts will be needed to protect social and pro-poor spending while containing fiscal risks arising from energy price shocks, revenue shortfalls, and state-owned enterprises (SOEs).
“Addressing banking sector vulnerabilities requires prompt and decisive action. The launch of the independent asset quality review of the weak financial institution is an important step. Timely analysis of risks and vulnerabilities, followed by a credible strategy that safeguards financial stability, ensures transparency, and contains fiscal costs, will be critical to move forward.
“Structural reforms should remain focused on areas critical to supporting growth and mitigating fiscal risks. Priorities include strengthening governance and financial viability in the electricity sector, particularly for the state-owned utility company, and enhancing fiscal reporting, debt transparency, and SOEs oversight. Governance reforms, including stronger anti-corruption frameworks, timely publication and implementation of the Governance Diagnostic Assessment recommendations, and improved AML/CFT effectiveness.”
[1] Under the IMF’s Articles of Agreement, publication of documents that pertain to member countries is voluntary and requires the member consent. The staff report will be shortly published on the www.imf.org/Togo page.
Media contact:
Kwabena Akuamoah-Boateng kakuamoah-boateng@IMF.org
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