The International Monetary Fund's Executive Board completed the combined third and fourth reviews of Togo's Extended Credit Facility arrangement, enabling an immediate disbursement of SDR 80.74 million and bringing total disbursements under the program to about USD 298.63 million. The arrangement was approved in March 2024 in an amount equivalent to SDR 293.6 million. In the same decision, the board approved waivers for nonobservance of the quantitative performance criterion on the ceiling on net domestic financing and the continuous criteria on new external borrowing and the non-accumulation of external arrears, citing delays in external disbursements, administrative constraints and evolving financing conditions, and describing the breaches as minor and temporary. The IMF said program implementation has been broadly satisfactory, with most quantitative performance criteria met, seven of eight structural reforms completed since the second review, and social and pro-poor spending targets achieved. It described Togo's economy as resilient, with real GDP growth of about 6 percent in 2025 led by services and easing inflation, although growth is expected to soften temporarily in 2026 and inflation to rise because of geopolitical spillovers, especially the war in the Middle East. The board highlighted the need to sustain fiscal consolidation toward the West African Economic and Monetary Union fiscal deficit convergence target, advance tax and spending reforms, address banking sector vulnerabilities including through the independent asset quality review of a weak financial institution, and continue governance, debt transparency, state-owned enterprise oversight and anti-corruption reforms.

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