Press Release No. 11/285

Press Release: IMF Executive Board Completes Sixth and Final Review Under the ECF Arrangement for Togo and Approves US$13.95 Million Disbursement

July 18, 2011

The Executive Board of the International Monetary Fund (IMF) today completed the sixth and final review of Togo’s economic program supported by the Extended Credit Facility (ECF). The approval will enable an immediate disbursement in an amount equivalent to SDR 8.8 million (about US$13.95 million), bringing total disbursements under the arrangement to an amount equivalent to SDR 95.41 million (about US$151.21 million).

The Executive Board also concluded the 2011 Article IV consultation. Details of the findings of the Article IV will be published in a Public Information Notice in due course.

The ECF Arrangement for Togo was approved on April 21, 2008 (See Press Release No. 08/90). The authorities have requested the opening of discussions on a successor IMF-supported economic program.

Following the Executive Board's discussion, Ms. Nemat Shafik, Deputy Managing Director and Acting Chair, said:

“The Togolese authorities have maintained a strong track record of program implementation. The strong budget execution in 2010 was commendable. The execution of domestically financed public investment and priority social spending has improved. Growth has picked up in large part as a result of these developments.

“After delaying the pass-through of higher global oil prices to consumers, the authorities began implementing the automatic pricing mechanism in June, to limit the budgetary impact of the fuel subsidies. The mechanism aims to minimize economic distortions and safeguard public finances, while targeted measures cushion the social impact of higher fuel prices.

“The medium-term budget framework appropriately emphasizes increasing public investment to support growth, to be financed largely by domestic revenue, grants, and highly concessional external loans. This ambitious approach puts a premium on the quality of investment projects, public financial management reforms and revenue administration efforts.

“The authorities are committed to accelerating broad-based structural reforms aimed at boosting competitiveness and potential growth. It is particularly important to proceed expeditiously with the recently reinvigorated privatization process for the four largest state-owned banks, which will lead to a sounder and more efficient banking sector. Other priorities are maintaining a sustainable fiscal policy, reforming public enterprises, increasing investment in physical and human capital, and improving the business climate,” Ms. Shafik added.