The International Monetary Fund said its staff had reached a staff-level agreement with Togo on the combined third and fourth reviews of the country’s Extended Credit Facility arrangement, subject to Executive Board approval and observance of relevant Fund policies. If the reviews are completed, Togo would gain access to SDR 80.74 million, about USD 110.8 million, bringing total disbursements under the arrangement to SDR 220.2 million, about USD 302.2 million. IMF staff assessed program implementation as broadly satisfactory. Most quantitative performance criteria under the two reviews were met, seven of eight structural benchmarks since the second review were completed, and social and pro-poor spending targets were achieved. The measures highlighted included stronger public financial management, greater fiscal transparency, and better oversight of state-owned enterprises. Staff said real GDP grew by about 6 percent in 2025, while the 2026 outlook points to temporarily softer activity and higher inflation because of spillovers from geopolitical tensions, notably the conflict in the Middle East. Fiscal performance reduced the 2025 deficit to 3.2 percent of GDP, but the 2026 budget is under added pressure from the energy shock. The medium-term objective remains to bring the deficit to 3 percent of GDP by 2027 through revenue mobilization while protecting social spending and debt sustainability. Staff also pointed to the need to address banking sector vulnerabilities, improve state-owned enterprise performance, especially in energy, and continue governance and business environment reforms. The agreement now goes to the IMF Executive Board for approval.

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