Togo: 2007 Article IV Consultation and First Staff Review of the Staff-Monitored Program: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Togo

IMF Staff Country Reports, June 25, 2007

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Canonical URL: Togo: 2007 Article IV Consultation and First Staff Review of the Staff-Monitored Program: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Togo

The 2007 Article IV Consultation highlights Togo’s developments and performance under the Staff-Monitored Program (SMP).
Togolese banks have the highest nonperforming loan (NPL) ratio in the West African Economic and Monetary Union (WAEMU) area, reflecting primarily past lending to loss-making enterprises in the cotton and phosphate sectors.
Executive Directors commended the progress made in restoring fiscal discipline and strengthening governance, in particular the reforms to strengthen tax and customs administration and improve expenditure control.

Banking sector: Highest NPL ratio in the WAEMU area; primary cause identified as past lending to loss-making enterprises in the cotton and phosphate sectors.
Fiscal performance: Noted progress in restoring fiscal discipline.
Governance and reforms: Reforms highlighted to:
- Strengthen tax administration.
- Strengthen customs administration.
- Improve expenditure control.

Subjects: Arrears, Asset and liability management, Banking, Debt relief, External debt, Fiscal consolidation, Fiscal policy, Public debt
Keywords: Arrears, authorities' effort, authority, clearance strategy, CR, Debt relief, Fiscal consolidation, Global, ISCR, Sub-Saharan Africa, tax arrears recovery, terms of trade shock, Togo, unity government, West Africa