Abstract
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
Relations with the Fund
(as of April 30, 2019)
Membership Status: Joined August 1, 1962; Article VIII
| General Resources Account: | SDR million | % of Quota |
|---|---|---|
| Quota | 146.80 | 100.00 |
| IMF’s holdings of currency | 127.69 | 86.98 |
| Reserve Tranche Position | 19.20 | 13.08 |
| General Resources Account: | SDR million | % of Quota |
|---|---|---|
| Quota | 146.80 | 100.00 |
| IMF’s holdings of currency | 127.69 | 86.98 |
| Reserve Tranche Position | 19.20 | 13.08 |
| SDR Department: | SDR million | % of Quota |
|---|---|---|
| Net cumulative allocation | 70.33 | 100.00 |
| Holdings | 73.26 | 104.16 |
| SDR Department: | SDR million | % of Quota |
|---|---|---|
| Net cumulative allocation | 70.33 | 100.00 |
| Holdings | 73.26 | 104.16 |
| Outstanding Purchases and Loans: | SDR million | % of Quota |
|---|---|---|
| ECF Arrangements | 118.65 | 80.82 |
| Outstanding Purchases and Loans: | SDR million | % of Quota |
|---|---|---|
| ECF Arrangements | 118.65 | 80.82 |
Latest Financial Arrangements:
Overdue Obligations and Projected Payments to the Fund2
(SDR million; based on existing use of resources and present holdings of SDRs)
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | 8.73 | 7.48 | 1.76 | 2.52 | 12.59 |
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | |
| Total | 8.73 | 7.48 | 1.76 | 2.52 | 12.59 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | 8.73 | 7.48 | 1.76 | 2.52 | 12.59 |
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | |
| Total | 8.73 | 7.48 | 1.76 | 2.52 | 12.59 |
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
| Implementation of HIPC Initiative: | |||
| I. Commitment of HIPC assistance | Enhanced Framework | ||
| Decision point data | Nov. 2008 | ||
| Assistance committed | |||
| By all creditors (US$ Million)1 | 282.00 | ||
| Of which: IMF assistance (US$ million) | 0.32 | ||
| (SDR equivalent in millions) | 0.22 | ||
| Completion point date | Dec. 2010 | ||
| II. Disbursement of IMF assistance (SDR Million) | 0.22 | ||
| Assistance disbursed to the member | 0.08 | ||
| Interim assistance | 0.14 | ||
| Completion point balance | 0.01 | ||
| Additional disbursement of interest income2 | |||
| Total disbursements | 0.22 | ||
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
| Implementation of HIPC Initiative: | |||
| I. Commitment of HIPC assistance | Enhanced Framework | ||
| Decision point data | Nov. 2008 | ||
| Assistance committed | |||
| By all creditors (US$ Million)1 | 282.00 | ||
| Of which: IMF assistance (US$ million) | 0.32 | ||
| (SDR equivalent in millions) | 0.22 | ||
| Completion point date | Dec. 2010 | ||
| II. Disbursement of IMF assistance (SDR Million) | 0.22 | ||
| Assistance disbursed to the member | 0.08 | ||
| Interim assistance | 0.14 | ||
| Completion point balance | 0.01 | ||
| Additional disbursement of interest income2 | |||
| Total disbursements | 0.22 | ||
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable
Implementation of Catastrophe Containment and Relief (CCR): Not Applicable
Safeguards Assessments
An updated safeguards assessment of the BCEAO, completed in April 2018, found that the central bank has maintained a strong control environment since the last assessment in 2013 and its governance arrangements are broadly appropriate. In addition, audit arrangements have been strengthened, the accounting framework adopted International Financial Reporting Standards (IFRS) beginning with the 2015 financial statements, and a 2016 external quality review of the internal audit function found broad conformity with international standards. The BCEAO’s risk management framework established in 2014 is also progressing well with implementation of its work across the bank.
Exchange Arrangement
Togo, a member of the WAEMU, accepted the obligations under Article VIII, Sections 2, 3 and 4 of the Fund’s Articles of Agreement as of June 1, 1996, and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions. The WAEMU’s exchange regime is a conventional peg to the euro.
The union’s common currency, the CFA franc, had been pegged to the French franc at the rate of CFAF 1 = F 0.02. Effective January 12, 1994, the CFA franc was devalued and the new parity set at CFAF 1 = F 0.01. Effective December 31, 1998, the parity was switched to the euro at a rate of CFAF 655.957 = €1.
Last Article IV Consultation
Togo is on a 24-month consultation cycle. The latest Article IV consultation was completed by the Executive Board on May 5, 2017 (Country Report No.17/127).
Technical Assistance
Capacity development is currently focused on measures to: (i) increase domestic revenue mobilization and modernize the customs administration; (ii) improve PFM, including investment management and program-based budgeting; and (iii) strengthen the compilation and dissemination of statistics.
Resident Representative
Mr. Sampawende Jules Tapsoba
Relations with Other IFI’S
World Bank Group http://www.worldbank.org/en/country/togo
African Development Bank https://www.afdb.org/en/countries/west-africa/togo/
Statistical Issues
1. Data provision is broadly adequate for surveillance, but weaknesses in the quality and timeliness of data hamper staff’s analysis.
National accounts: are compiled based on very limited information, with only few surveys and scarce data on primary agriculture and private sector services. National accounts are published with considerable delays and are only available on annual frequency. Base year for constant price GDP is 2007; a rebasing is underway.
Price statistics: Base year for CPI index is 2008.
Fiscal sector statistics: Data on budget execution and government arrears have improved but some significant weaknesses remain, including on consistency of data across sectors and sources. Also, there are significant delays in compilation and dissemination, and limited or no data on public entities outside of (budgetary) central government.
Balance of payments statistics: Data are reported on an annual frequency with long lags. Coverage is incomplete and there are consistency issues between the IIP and other balance of payment data.
Monetary data: are reported by the BCEAO and sent to AFR within 45 days.
2. The country has participated in the General Data Dissemination System (GDDS) since November 2001.
National Accounts and Consumer Price Index (CPI)
3. Like other West African Economic and Monetary Union (WAEMU) member states, Togo embarked in late 2002 on implementing the System of National Accounts 1993 (1993 SNA), using the ERETES software. The national accounts for the new base year (2007) were completed in 2012. In 2013 the Direction Générale de la Statistique et de la Comptabilité Nationale (DGSCN) published the National Accounts GDP numbers covering the period 2000–2007. Respectively, in 2014 and 2015 the 2009 and 2010 National Accounts GDP numbers were finalized and published. The national statistics institute, INSEED (Institut National de la Statistique et des Etudes Economiques et Démographiques), established in February 2015, is currently executing a plan, with the support of AFRITAC West, to clear the delay in the elaboration of National Accounts corresponding to the period 2011–15 by 2017. Progress has been made on this front and national accounts through 2013, 2014 and 2015 were published respectively in early 2017, June 2017 and early 2018. The provisional accounts for 2016 and 2017 will be published before the end of 2019. Given that limited resources are available, plans to build quarterly NA have been cancelled to prioritize the work on closing the delays in the publication of National Accounts, and on the transition of National Accounts to SNA 2008.
4. The CPI basket was revised in 2010. The WAEMU commission, supported by AFRISTAT and the BCEAO, launched a revision of the harmonized CPI basket in the region in 2008. The reform included expanding CPI surveys, and updating the weights of various sub-components to reflect consumption habits. In line with WAEMU directives the INSEED is constructing a consumer price index with national coverage. The collection of the first observations started in January 2015.
External Sector Statistics
5. Balance of payments statistics and international investment position data are compiled based on bank reports, a survey of enterprises, and customs data. Statistics are compiled following the principles of the 6th balance of payment manual. The Central bank continues its efforts for a better coverage of informal trade notably with the sub-regional unit for the reconciliation of intra-WAMU trade.
Government Accounts and Public Debt Data
6. The Government finance statistics are compiled by the Ministry of State from customs, tax, and treasury departments and consolidated in the form of government financial operations tables (TOFE). The new WAEMU budget nomenclature now permits the economic and ministerial classification of expenditure, with functional classification under development. The monthly TOFE is based on a mixture of administrative and accounting data and is sent to AFR with a two-month lag. Only budgetary central government data are reported for publication in the Government Finances Statistics Yearbook (GFSY), government finance high frequency data are not reported for publication in the IFS. In the context of the 2013 Article IV consultation, with assistance from STA, the authorities established a bridge table allowing transposition of TOFE data, which is based on the 1986 Government Finance Statistics Manual (GFS86), to the 2001 Government Finance Statistics Manual (GFSM01).
Monetary Statistics
7. Monthly data for Togo, along with data for other members of the West African Monetary Union are regularly disseminated by the Central Bank of the West African Monetary Union (BCEAO) with a lag of about two months. Data on lending and borrowing rates, charged by domestic banks, are compiled and available monthly.
Togo: Table of Common Indicators Required for Surveillance
(as of May 2019)
The general government consists of the central government (budgetary funds, extra-budgetary funds, semi-autonomous government agencies and institutions, and social security funds) and state and local governments.
Monthly (M), Quarterly (Q), Semi Annually (SA), Annually (A), on mission (OM).
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Togo: Table of Common Indicators Required for Surveillance
(as of May 2019)
| Economic Variable | Date of latest observation | Date received | Frequency of Data2 | Frequency of Reporting2 | Publication |
|---|---|---|---|---|---|
| Exchange Rates | April 2019 | May 2019 | M | M | Published |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities | March 2019 | May 2019 | M | M | Published |
| Reserve/Base Money | March 2019 | May 2019 | M | M | Published |
| Broad Money | March 2019 | May 2019 | M | M | Published |
| Central Bank Balance Sheet | March 2019 | May 2019 | M | M | Published |
| Consolidated Balance Sheet of the Banking System | March 2019 | May 2019 | M | M | Published |
| Interest Rates | March 2019 | May 2019 | M | M | Published |
| Consumer Price Index | April 2019 | May 2019 | M | M | Published |
| Revenue, Expenditure, Balance and Composition of Financing – General Government1 | December 2018 | April 2019 | M | M | Not published |
| Revenue, Expenditure, Balance and Composition of Financing– Central Government | December 2018 | April 2019 | M | M | Not published |
| Stocks of Central Government and Central Government-Guaranteed Debt | February 2019 | May 2019 | M | M | Not published |
| External Current Account Balance | December 2018 | May 2019 | A | A | Published |
| Exports and Imports of Goods and Services | December 2018 | May 2019 | A | A | Published |
| GDP/GNP | December 2018 | May 2019 | A | A | Published |
| Gross External Debt | February 2019 | May 2019 | M | M | Not published |
| International Investment Position3 | December 2018 | May 2019 | A | A | Published |
The general government consists of the central government (budgetary funds, extra-budgetary funds, semi-autonomous government agencies and institutions, and social security funds) and state and local governments.
Monthly (M), Quarterly (Q), Semi Annually (SA), Annually (A), on mission (OM).
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Togo: Table of Common Indicators Required for Surveillance
(as of May 2019)
| Economic Variable | Date of latest observation | Date received | Frequency of Data2 | Frequency of Reporting2 | Publication |
|---|---|---|---|---|---|
| Exchange Rates | April 2019 | May 2019 | M | M | Published |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities | March 2019 | May 2019 | M | M | Published |
| Reserve/Base Money | March 2019 | May 2019 | M | M | Published |
| Broad Money | March 2019 | May 2019 | M | M | Published |
| Central Bank Balance Sheet | March 2019 | May 2019 | M | M | Published |
| Consolidated Balance Sheet of the Banking System | March 2019 | May 2019 | M | M | Published |
| Interest Rates | March 2019 | May 2019 | M | M | Published |
| Consumer Price Index | April 2019 | May 2019 | M | M | Published |
| Revenue, Expenditure, Balance and Composition of Financing – General Government1 | December 2018 | April 2019 | M | M | Not published |
| Revenue, Expenditure, Balance and Composition of Financing– Central Government | December 2018 | April 2019 | M | M | Not published |
| Stocks of Central Government and Central Government-Guaranteed Debt | February 2019 | May 2019 | M | M | Not published |
| External Current Account Balance | December 2018 | May 2019 | A | A | Published |
| Exports and Imports of Goods and Services | December 2018 | May 2019 | A | A | Published |
| GDP/GNP | December 2018 | May 2019 | A | A | Published |
| Gross External Debt | February 2019 | May 2019 | M | M | Not published |
| International Investment Position3 | December 2018 | May 2019 | A | A | Published |
The general government consists of the central government (budgetary funds, extra-budgetary funds, semi-autonomous government agencies and institutions, and social security funds) and state and local governments.
Monthly (M), Quarterly (Q), Semi Annually (SA), Annually (A), on mission (OM).
Includes external gross financial asset and liability positions vis-à-vis nonresidents.