Togo has made significant progress in advancing economic and political reforms under the Staff-Monitored Program (SMP). Important fiscal governance reforms have boosted tax revenues and helped expenditure control. The I-PRSP is designed to preserve macroeconomic stability while reviving economic growth and reducing poverty. The Poverty Reduction Growth Facility (PRGF) helped to consolidate macroeconomic stability, achieve fiscal and debt sustainability and pave the way for HIPC/MDRI debt relief. On account of a strong performance under the SMP, a fast reviving economy and achieving fiscal and debt sustainability, Togo requested a three-year arrangement with the IMF under the PRGF.
2019 Article IV Consultation, Fourth Review under the Extended Credit Facility Arrangement, and Request for Waiver of Nonobservance of Performance Criterion and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Togo
The first Annual Progress Report (APR) of Togo highlights many of the reforms implemented during the first year of the Poverty Reduction Strategy Paper (PRSP) while recognizing some weaknesses and implementation constraints. It draws attention to important advances in macrocritical structural reforms, notably in the areas of public financial management; fiscal governance; domestic arrears clearance to private suppliers; and banking sector restructuring. It also presents a macroeconomic framework consistent with the one agreed under the fifth Extended Credit Facility (ECF) review mission. It is recommended that the next APR should elaborate more on the macroeconomic challenges and risks.
Togo showed solid progress under the Extended Credit Facility (ECF)-supported economic program. Executive Directors appreciated its strong track record of policy, reform implementation, and commitment to sound reforms. In addition to maintaining macroeconomic stability, Togo has fully met all other requirements for the HIPC completion point. The Executive Board welcomed its achievement on completion of the fifth review under the ECF and granted extension of the arrangement under HIPC to create the financial space toward the acceleration of its reform agenda, economic development, and meeting the MDGs.